Running Head: Case Study #4 Case Study #4 Initial Thread Jean S. Hamby BUSI 561 Liberty University Introduction Betty Wilson has decided to open a coffee shop and is considering various options including franchising‚ sole proprietorship‚ joint venture‚ corporation and partnership. In addition to determining the best legal entity to form‚ Betty has to decide if she will employ or partner with various friends and family members. Finally‚ she plans to name the coffee shop The Gathering
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Sole proprietorship This business is an individual owned organization. This business is the most attractive because of its simplicity and control over the business. * Liability-.This business has unlimited liability. The owner is responsible for everything. If the business begins to fail personal assets and business assets can be sought after to pay off debts. There is no distinction between the two assets. * Income taxes- Business owners in a sole proprietorship file a 1040 as well as
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and overview of the six types of business forms. SOLE PROPRIETORSHIP The overall benefits of a sole proprietorship are the flexibility and inexpensive way you can organize and control the company. The owner can create their own policy and procedures as long as they are with the parameters of the law. They receive all income generated by their business and can reinvest as they see fit. Disadvantages There are a few disadvantages sole owners can experience such as raising funds‚ use their
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out the advantages and disadvantages of Sole Proprietorship’s‚ Partnerships‚ Corporations‚ and cooperative Business organizations. The information provided will also give you an insight on exactly what each Business Organization does and how it works and fits in Business structure. A lot of businesses start as sole proprietorships. There is typically one person who usually has day-to-day responsibility for running the business and that owns the firms. The Sole proprietors typically own all of the
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should continue to be a sole proprietorship or if he should switch to another business entity. I will help him do so by explaining each entity and how they relate to his business situation. I am the manager of Acme Fireworks‚ a fireworks retailer who sells fireworks‚ puts on ground display fireworks‚ and large aerial display fireworks. The company started in the owner’s garage two years ago and now has 15 employees that you manage. The company started as a sole proprietorship‚ and the owner has never
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successful. There are many advantages and disadvantages when owning your own business. When you own your own business‚ it’s known as a sole proprietorship. With any type of business‚ there will always be advantages and disadvantages. Five advantages for owning your own business are: 1) The owner receives all profits‚ meaning that all earnings go to the sole proprietor‚ or the owner‚ and isn’t shared with anyone else. The profit is not split among partners‚ or split among a corporation. So when
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business 1 Sole Proprietorship A sole proprietorship places all liabilities for finances and operations on the owner. The owner’s personal property is tied to the business‚ so he assumes a risk against his personal assets should the business experience financial hardship. Annual income tax returns are filed on a Form 1040‚ and the owner must also file self-employment taxes. The profits and losses of the business are reported through the owner and are taxed at the individual rate. The sole proprietorship
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seriously considers the different forms of business organization — types such as sole proprietorship‚ partnership‚ and corporation. Which organizational form is most appropriate can be influenced by tax issues‚ legal issues‚ financial concerns‚ and personal concerns. This essay explains the general impression of business organizations. A Sole Proprietorship‚ also known as the sole trader or simply proprietorship‚ is a type of business entity that is owned and run by one individual and in which
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business that if being formed ("Choose Your Business Structure"‚ 2014). The six types of business structures are Sole Proprietorship‚ Partnership‚ Cooperative‚ Limited Liability Company (LLC)‚ S Corporation‚ and Corporation. Each business structure offers both positive and negative aspects that must be weighed by the business owner to find the best fit (Spadaccini‚ 2014). A sole proprietorship offers the easiest form of business structure. There is only one owner that is entitled to all profits made by
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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
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