hot-dog vendor and the trucking company‚ as an example: assume that each business is operated by a single individual. While one may argue that the proper form of organization for each would be a sole proprietorship‚ that would not be the case: the hot-dog vendor could clearly be operated as a sole proprietorship‚ but not the trucking company. Because of the nature of the trucking business‚ limiting the liability of the principals is vital: thus‚ the best form of organization for the trucking company
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advantages and disadvantages in creation cost and simplicity‚ ongoing maintenance requirements‚ dissolution and continuity‚ fundraising‚ managerial control‚ public ownership‚ tax planning‚ and limited liability.” The nature of the business being conducted has little to do with the way the business is organized. (Johnson‚ 2013) Sole Proprietorship: The basic concept of sole proprietorship is that there is no distinction between the individual business owner and the business. To start this
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Sole Proprietorship Sole proprietorship is the most common form of business in the United States. It is a relatively simple way for an individual to start a business since legal costs and business requirements are minimal‚ and the owner has complete control over the business. Though a sole proprietor is not responsible for any corporate tax payments‚ the owner is responsible for taxes incurred on the income generated from the business as part of his or her personal income tax payments‚ and personally
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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
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SOLE PROPRIETORSHIP: A business owned by a single person and that person is solely responsible for the debts (unlimited). It’s a business that is simple and easy to set up. LIABILITY: The owner of the business is solely responsible. The owner signs business contracts in their own name. INCOME TAXES: Income earned by the business is the owner’s income. The sole proprietor files at 1040 and schedule C & SE. LONGEVITY/CONTINUITY: The business dies with the owner unless there is a Last Will & Testament
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LIT1 – Task 310.1.2-01-06 Part A SOLE PROPRIETORSHIP: A sole proprietorship is the easiest of all the business types to start and take the least amount of start-up capital. This is also the most common form of doing business in the United States. With a sole proprietorship‚ the business and the owner are one in the same and it is not possible to bring someone into the business. Liability: The owner is responsible for the debt of the business. There is no differential made from the business
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SOLE PROPRIETORSHIP: This is a type of business with one owner. The business may not even need to be registered with the state as long as they are “doing business” as themselves. It is a very easy to start up a sole proprietorship‚ and more often than not it does not require a great deal of money. Another advantage is that the profits go straight to the sole proprietor who doesn’t need to worry about sharing or dealing with another individual or entity on the day to day operations as well as
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Sole Proprietorship A business with one owner who is responsible for all features of the business. Everything that happens in the company from the daily operation to the legal obligations are controlled by one individual. Sole Proprietorship Advantages: • Convenience - Usually the least costly to begin. Sole proprietorships are easy to start up. They entail acquiring the proper licenses and permits. Regulations very from industry‚ state‚ and county. There is no administrative configuration
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structure‚ a Sole Proprietorship. Since you currently are operating this way‚ it will be easiest‚ and make the most sense to explain it to you. As with the rest of the structures‚ we will go through a list of each of the seven characteristics of a business. Liability-First is a concern for you‚ liability‚ say for instance‚ in the situation of a contract employee. This could end up being a major concern for you. It is one of the larger disadvantages of a sole proprietorship
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310.1.2: Organizational Forms Task A SOLE PROPRIETORSHIP: This is the most common form of business as it is owned by one person‚ so there is no distinction between the business and the owner. Liability – Because there is no distinction between the business and the owner‚ all liability falls on the owner/sole proprietor. If the business fails‚ both personal and business worth and assets are at risk as they are the same. Income Taxes – Filing for income taxes are an advantage as the owner
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