LAW/521
University of Phoenix Material
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. Low cost of formation
2. One person decides all the business decisions
3. All of the business profits go to the owner
Disadvantages
1. Access to funds are limited to the owner
2. Sole proprietor’s have unlimited liability
3. Sole proprietorship is responsible for torts committed by the business and its employess
Summary:
An example of a business that can be started through a sole proprietorship is a gutter cleaning service. After creating a name which can be the owners name or a D.B.A. in which he would have to register. The owner would have full responsibility to the decisions of starting the business. The owner will have choices on who to hire, fire, and promote. The business will be started through funds obtained from the owner through his personal funds and personal loans. A disadvantage is that the owner will have to fund all the equipment used for the business with thoses funds. An advantage is he would have total choice on which equipment he purchases. Another advantage is that if an opportunity to sell the business occurs the gutter cleaning owner would have the only voice in making that matter. Depending on where the business is located certain licenses may need to be obtained through local governmental agencys.
Partnership
Advantages
1. Shared
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. Low cost of formation
2. One person decides all the business decisions
3. All of the business profits go to the owner
Disadvantages
1. Access to funds are limited to the owner
2. Sole proprietor’s have unlimited liability
3. Sole proprietorship is responsible for torts committed by the business and its employess
Summary:
An example of a business that can be started through a sole proprietorship is a gutter cleaning service. After creating a name which can be the owners name or a D.B.A. in which he would have to register. The owner would have full responsibility to the decisions of starting the business. The owner will have choices on who to hire, fire, and promote. The business will be started through funds obtained from the owner through his personal funds and personal loans. A disadvantage is that the owner will have to fund all the equipment used for the business with thoses funds. An advantage is he would have total choice on which equipment he purchases. Another advantage is that if an opportunity to sell the business occurs the gutter cleaning owner would have the only voice in making that matter. Depending on where the business is located certain licenses may need to be obtained through local governmental agencys.
Partnership
Advantages
1. Shared