Bdxion Subdomain 310-1-2 Organizational Forms
PART A : THE REPORT Business Law - Subdomain 310.1.2: Organizational Forms
A Sole Proprietorship is ideal for an individual that wishes to keep all of the business controls to the individual, for the good and the bad of the business. The individual is legally responsible; there is no protection for the business owner. Liability – The owner is completely liable for all legal actions and can be sued directly. Income Taxes – The Sole Proprietor is a highly taxed form of business, for the individual, with few tax breaks and fewer deductions allowed when comparing other business types or formations. Business income is taxed only one time and is reported on a personal tax form. Washington State, where I live, has no state income tax but the proprietor must still pay Federal income tax on the profits. Continuity/Longevity – The business with a sole proprietor can run as long or as short as desired by the business owner. Death is where the business would naturally end, unless prior arrangements were made to transfer ownership to another individual. Control – The owner (individual) is in complete control of the business direction and choices. Profit Retention –The profit is retained by the owner, assuming all bills and employees are paid, the money left over can be considered profit for the owner. Location – The location of the Sole Proprietorship should be wherever the business owner/business is located. Expansion to multiple states is less likely to occur, though if it happens the owner just needs to create a new Doing Business As (DBA) in the new state of choice. Burden/Convenience – The burden and convenience are the challenges and benefits of being a business owner, being the sole responsible party for success and failure alike, no external requirements like meetings or other regulations are required though.
A General Partnership is a business type that involves multiple business owners, whether it is 2, 3 or 10 people. The profits and
A Sole Proprietorship is ideal for an individual that wishes to keep all of the business controls to the individual, for the good and the bad of the business. The individual is legally responsible; there is no protection for the business owner. Liability – The owner is completely liable for all legal actions and can be sued directly. Income Taxes – The Sole Proprietor is a highly taxed form of business, for the individual, with few tax breaks and fewer deductions allowed when comparing other business types or formations. Business income is taxed only one time and is reported on a personal tax form. Washington State, where I live, has no state income tax but the proprietor must still pay Federal income tax on the profits. Continuity/Longevity – The business with a sole proprietor can run as long or as short as desired by the business owner. Death is where the business would naturally end, unless prior arrangements were made to transfer ownership to another individual. Control – The owner (individual) is in complete control of the business direction and choices. Profit Retention –The profit is retained by the owner, assuming all bills and employees are paid, the money left over can be considered profit for the owner. Location – The location of the Sole Proprietorship should be wherever the business owner/business is located. Expansion to multiple states is less likely to occur, though if it happens the owner just needs to create a new Doing Business As (DBA) in the new state of choice. Burden/Convenience – The burden and convenience are the challenges and benefits of being a business owner, being the sole responsible party for success and failure alike, no external requirements like meetings or other regulations are required though.
A General Partnership is a business type that involves multiple business owners, whether it is 2, 3 or 10 people. The profits and