lBusiness Forms Worksheet
Business Forms Worksheet
There are seven forms of business: sole proprietorship, partnership, limited liability partnership, limited liability Company (including the single member LLC), S Corporation, Franchise, and Corporation.
1. Research and provide three advantages and three disadvantages for each business form.
2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary to file in order to form that business? Discuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages
1. Only taxed once through their personally tax return.
2. Less paperwork required to open the business than any other form.
3. Complete control and decision-making power over the business.
AllBusiness.com Inc. (2008). Advantages and Disadvantages of Sole Proprietorships. Retrieved March 1,
2014, from http://www.nytimes.com/allbusiness/AB4113314_primary.html
Disadvantages
1. The individual is personally responsible for all debts and liabilities.
2. Investors will not usually invest in the business.
3. Personal assets can be attached in the incidence of a lawsuit.
AllBusiness.com Inc. (2008). Advantages and Disadvantages of Sole Proprietorships. Retrieved March 1,
2014, from http://www.nytimes.com/allbusiness/AB4113314_primary.html
Summary I was a sole proprietor for ten years, I ran an in-home daycare that was licensed through the state. All the decision-making, accounting and day to day responsibilities were solely up to me and my responsibility. The business was originally ran and operated in California for the first three years then moved to Texas for the remainder of the years in operation. I was responsible for obtaining an Employer Identification Number (EIN) which was not only used for tax purposes but for statements provided to parents. A license had to be obtained through the state to operate, I
There are seven forms of business: sole proprietorship, partnership, limited liability partnership, limited liability Company (including the single member LLC), S Corporation, Franchise, and Corporation.
1. Research and provide three advantages and three disadvantages for each business form.
2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary to file in order to form that business? Discuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages
1. Only taxed once through their personally tax return.
2. Less paperwork required to open the business than any other form.
3. Complete control and decision-making power over the business.
AllBusiness.com Inc. (2008). Advantages and Disadvantages of Sole Proprietorships. Retrieved March 1,
2014, from http://www.nytimes.com/allbusiness/AB4113314_primary.html
Disadvantages
1. The individual is personally responsible for all debts and liabilities.
2. Investors will not usually invest in the business.
3. Personal assets can be attached in the incidence of a lawsuit.
AllBusiness.com Inc. (2008). Advantages and Disadvantages of Sole Proprietorships. Retrieved March 1,
2014, from http://www.nytimes.com/allbusiness/AB4113314_primary.html
Summary I was a sole proprietor for ten years, I ran an in-home daycare that was licensed through the state. All the decision-making, accounting and day to day responsibilities were solely up to me and my responsibility. The business was originally ran and operated in California for the first three years then moved to Texas for the remainder of the years in operation. I was responsible for obtaining an Employer Identification Number (EIN) which was not only used for tax purposes but for statements provided to parents. A license had to be obtained through the state to operate, I