benefits of financial freedom. Disadvantages are unlimited liability‚ continuity‚ limited resources‚ and raising working capital. * Liability – The liability of a sole proprietorship is a disadvantage for the company. The owner has unlimited liability which means he/she is personally liable for all the business’s obligations and debts. All of the owner’s personal assets and liabilities have no distinction from the business’s assets and liabilities. This also means that there is no legal protection against
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day-to-day responsibility for running the business and that owns the firms. The Sole proprietors typically own all of the assets of the business and the profits made from it. Sole proprietorship’s also take complete responsibility for any of the liabilities or debts. The advantages of Sole proprietorship’s are that they are: The Easiest and the most inexpensive of Business organizations and ownership. Sole proprietors are in complete control of their business and‚ within the boundaries of the law;
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restructure their obligations and continue the business can choose. In chapter 7 a trustee is appointed‚ available assets are sold‚ and creditors are paid to the extent funds are available. This option is only available for partnerships‚ limited liability companies‚ and corporations. Small businesses with sole proprietorships can also file for chapter 7 but it depends on their income. Another
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Elements of a Business Plan 1. Cover sheet 2. Executive summary (statement of the business purpose) 3. Table of contents 4. Body of the document A. Business 1. Description of business 2. Marketing 3. Competition 4. Operating procedures 5. Personnel 6. Business insurance B. Financial data 1. Loan applications 2. Capital equipment and supply list 3. Balance sheet 4. Breakeven analysis 5. Profit and loss statements 6. Three-year summary 7. Detail by month‚ first year 8. Detail by
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of each. Specifically‚ I will discuss: Limited Liability Company and C Corporations. I have not included the general partnerships‚ limited partnerships‚ or S corporations as one of your choices for various reasons. With the general partnerships‚ all owners are jointly and personally liable for any debts. The limited partnerships is easier to attract investors as they are only liable for their total amount of their investment into the business but limited partnerships are mainly suited for investment
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business owners have an idea of what type of service or product to offer. Deciding the type of business organization to become can be a tough decision. Whether the it be a sole proprietorship‚ partnership‚ C- Corporation‚ S- Corporation‚ or a Limited Liability Corporation‚ there will be many factors to take into consideration. It is important to be educated or familiar with each business organization along with implications and benefits. The reason why the proper business organization is important
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However‚ with a sole-proprietorship‚ the owner is fully reliable for all capital debt. There are no separations from personal and business debts. Partnerships come in two forms; general partnerships and limited partnerships. The main differences between the two are that limited liability partnerships offer the protection that investors are only reliable up to their capital investment. Both forms of partnerships share the advantage that each partner is only taxed on their personal earnings and
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The owner and the business are considered one. The owner takes all the risk and receives all the profits. It is easy and inexpensive to start up a sole proprietorship however a sole owner has trouble raising capital which could limit growth. • LIABILITY –If the business fails the owner is financially responsible and my lose everything. • INCOME TAXES – The proprietor and the business are taxed together. • LONGEVITY/CONTINUITY – The business dies with the sole proprietor. • CONTROL – There is
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TABLE OF CONTENTS Business Structure 2 Sole Proprietorships 2 Partnerships 2 Limited Liability Companies 2 Corporations 2 Identification Numbers 3 Taxes 3 Recordkeeping 3 Assets 3 Business Checkbook 4 Tax Year 4 Insurance 4 Guidelines for Potential Store Owners Preliminary Draft Campbell’s Confections often receives requests from individuals to open and manage a new candy store. To help prospective owners‚ Campbell’s Confections has prepared a guide to provide answers
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VA. Named for the men in the family‚ the Murrells intended the restaurant to be financial security for their sons who were not interested in pursuing higher education. As such‚ the Murrell’s formed a LLC‚ a limited liability company for their restaurant. The LLC is of benefit to the company for a number of reasons: 1. Ownership Flexabiity Flexibility of ownership allowed several advantages to the family. First‚ Jerry‚ Janie‚ and their five sons are all able to hold membership in the LLC
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