Different Types of Businesses
Business Scenario
As discussed there are three different types of businesses, sole proprietor, partnership and corporations. With these businesses come many advantages and disadvantages that one will have to determine will best suit their own lifestyle. Starting a business is something very serious to plan and make sure you have the necessary financial backing to keep it running, and have the legal knowledge to keep yourself and organization covered. Lastly, if you have the knowledge and product you know something about and have the background the business could become successful and the more know how could make running a business less stressful.
Starting an adventure in opening a company will take much thought, planning, financial resources and legal aspects. The thought of an invention should be new and different than what is on the market now. The invention should also be what consumers are looking for, needing and safe. The safety will have to be fire and electrical proof and safe for being around children. Since this product on the scenario is to have widespread uses, is it easy to use and understand? As an inventor, to start a company, there are three types of businesses to choose. The first is a sole proprietor, where advantages are you are sole owner, make decisions yourself, easily set up and may do from home or away and tax benefits. A sole proprietor is you as a boss, have no one to answer or make decisions with. You may have a small business at home where you can still be home and do things around the house and still be with your family or may have a small business in the area you live in. The tax benefits in some areas could be the avoidance of being double-taxed as a corporation. The next tax benefit is you may be able to deduct your business losses to extent of total income that you have from all sources, including interest, dividends, and gains from sale of non-business property. Also if married and file a joint tax return, the
As discussed there are three different types of businesses, sole proprietor, partnership and corporations. With these businesses come many advantages and disadvantages that one will have to determine will best suit their own lifestyle. Starting a business is something very serious to plan and make sure you have the necessary financial backing to keep it running, and have the legal knowledge to keep yourself and organization covered. Lastly, if you have the knowledge and product you know something about and have the background the business could become successful and the more know how could make running a business less stressful.
Starting an adventure in opening a company will take much thought, planning, financial resources and legal aspects. The thought of an invention should be new and different than what is on the market now. The invention should also be what consumers are looking for, needing and safe. The safety will have to be fire and electrical proof and safe for being around children. Since this product on the scenario is to have widespread uses, is it easy to use and understand? As an inventor, to start a company, there are three types of businesses to choose. The first is a sole proprietor, where advantages are you are sole owner, make decisions yourself, easily set up and may do from home or away and tax benefits. A sole proprietor is you as a boss, have no one to answer or make decisions with. You may have a small business at home where you can still be home and do things around the house and still be with your family or may have a small business in the area you live in. The tax benefits in some areas could be the avoidance of being double-taxed as a corporation. The next tax benefit is you may be able to deduct your business losses to extent of total income that you have from all sources, including interest, dividends, and gains from sale of non-business property. Also if married and file a joint tax return, the
References: Ebert, R.J., & Griffin, R.W. (2005). Business essentials. Upper Saddle River, NJ: Pearson Prentice Hall. Poznak, JL. (2010). Doing Business as a Sole Proprietor. Retrieved October 9, 2010, from the Poznak Law Office website: http://www.poznaklaw.com/articles/solep.htm