Advantages And Disadvantages Of Tairia To Enhance The Growth Of Her Business

After deciding on the appropriate option that will best enhance the growth of her business, Taira still has to decide the business form best for her goals. Understanding the advantages and disadvantages of each can help make the decision easier, however, it completely depends on the desired result.
The sole owner creates goals with their own ideas in mind. They also collect all the profits and benefits of the business and because of this, they only pay taxes on their personal income and not additional ones for having a business. This is the most common for a business because it entails an easy start up with complete profits funneling towards the owner. Without any other partners, the owner must rely solely on their own assets as a means for creating the business. Any debt accumulated would be in the owner's name which could negatively affect their credit if the business experiences hardships. When the owner dies, so does the business.General
Franchise R Us matched her with an investor who is willing to join her business to enhance its growth. This form would work for their partnership because the first three years they will split profits from the franchise licensing. The general partnership allows Taira and the investor to express growth options they feel will best suit the company without the compromising of many shareholders such as in a LLC or corporation. The negative of this situation is if something happens to the business, both Taira and the investor are responsible. By creating a partnership agreement, the partners can assign responsibilities to each person. This allows Taira the ability to focus on the best option to grow her business and giving her own ideas to support the development. This option, unlike a sole proprietorship, gives Taira options for outside sources of income which can help expand her business more rapidly than if she depended on her own income and loans (Collins,