A Sole Proprietorship - 2212 Words

LIT 1 Task 1 Part A Joshua Carney Western Governors University WGU Student ID #000336183 SOLE PROPRIETORSHIP: A sole proprietorship is a business that is unincorporated and owned by a single person. A sole proprietorship is the simplest of the business organizations, allows freedom to the proprietor, they get to keep all of the profits, allows for taxing as a single unit and can enjoy a tax advantage of reducing taxable income due to business expenses. Some disadvantages of a sole proprietorship are that resources available, such as loans or investors are limited, there is unshared and unlimited liability on the proprietor’s part and when the proprietor dies, the business normally dies as well. †¢ Liability: A major drawback to the sole proprietorship is that there is unlimited and unshared liability on the proprietor’s part. There is no distinction between the sole proprietor’s business or personal assets and liabilities from a creditor’s standpoint. †¢ Income Taxes: A sole proprietor and their business are taxed as a single unit. All profits, no matter how big or little, are filed on the standard Form 1040 along with a Schedule C. All profits are considered personal income. †¢ Longevity or Continuity of the Organization: The biggest drawback of the sole proprietorship is that when the proprietor dies, the business dies with them. This could mean that any income from the business depended on by the remaining family could be cut off withoutShow MoreRelatedSole Proprietorship3410 Words   |  14 PagesCHAPTER FOUR SOLE PROPRIETORSHIP I. INTRODUCTION The sole proprietorship is the simplest form of â€Å"business association† we will examine. It is perhaps a bit odd to describe it as a form of â€Å"association† given that the â€Å"sole† proprietor will be the only â€Å"equity† investor and thus doesn’t â€Å"associate† with anyone else as a co-equity investor. However, there will almost invariably be â€Å"associations† that the sole proprietor will have in order to carry on the business. These can include associationsRead MoreSole Proprietorship, Partnership, or Corporation1822 Words   |  8 Pages BUSINESS PROSPECTS OF â€Å"THE THUNKER† Elizabeth Alfred Bus105 October 2010 BUSINESS PROSPECTS OF â€Å"THE THUNKER† 2 Business owners can form sole proprietorships, partnerships, or corporations. Each type of business entity has its pros and cons that can have a significant impact on the business and its owners. When considering a new product for a saturated market such as the clicker or the three-prongedRead MoreAcme Fireworks Is A Sole Proprietorship1770 Words   |  8 Pages Acme Fireworks is a sole proprietorship that has recently attracted the attention of larger retailers who desire to place large reoccurring orders. It is necessary to ascertain if Acme Fireworks can fulfill these orders and what will be necessary to fulfill such great volumes. In this proposal, I will Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code, Analyze whether the verbal agreement discussed between the owner and retailer meetsRead MoreThe Company : A Sole Proprietorship1761 Words   |  8 PagesPaula Moraru’s Submission for LIT1 TASK1 PART A SOLE PROPRIETORSHIP: It is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation, they are the simplest business to set up or take apart, making them popular among individual self contractors or business owners. The benefit of the sole proprietorship is the tax advantage. The disadvantage of a sole proprietorship is obtaining capital funding. Liability: Owner is liableRead MoreDescription Of A Sole Proprietorship2552 Words   |  11 Pages Sole Proprietorship Description A Sole Proprietorship is a business solely possessed by one person. The individual owner makes all the decisions and is held accountable for any matters pertaining to the business. An example of this is a lawsuit, due to the fact that legally the identity of the owner and the business is one and same. As a result of this lack of separation often times the owner is not required to register as a business unless a fake name is in use or certain services requiringRead MoreCompany Analysis : Sole Proprietorship1715 Words   |  7 PagesSole Proprietorship is the simplest and most common type of business structure that is owned and operated by one person solely. For this type of structure, legally there is no distinction between this person and the business. Liability – The owner is solely responsible for the debts that the sole proprietary business incurs and all actions or decisions made by self or employees. Income Taxes – All income and losses for the sole proprietorship business are reported to the IRS via the owner’s personalRead MoreEssay on Bus5611009 Words   |  5 Pagestrade marking implementation within the company. Sole proprietorship First, Betty has a decision to make on choosing a business form. Many business forms exist, but one should wisely choose his or her method. Sole proprietorship is the route many business people decide to take. Today, it has made a big impact on their businesses. According to recent research, â€Å"The easiest way to start-up your business is to operate it as a sole proprietorship. No formal action is required to form it, otherRead MoreTo Build or Buy1696 Words   |  7 Pagesclient base established, therefore maximizing the chances of success by the new owner (The Advantages of buying an Existing Business). The most appropriate ownership for this business would be the sole proprietorship, because it will be managed and owned by one individual. Sole Proprietorships are easy and can be formed quickly. For my financial situation this is perfect form of ownership. In most cases entrepreneurs can obtain business licenses from state, county, and local governments and beginRead More business plan Essay1191 Words   |  5 Pages† Statement of Purpose nbsp;nbsp;nbsp;nbsp;nbsp;The purpose of this business plan is to support a request for a 75,000 five-year bank loan to purchase equipment and inventory as part of the financing for a start-up sole proprietorship, Fast ‘n Fresh Premiun Ice Cream Parlor. The business will be owned by Daniel W. Beese and will be located in leased space at 858 Success Ave in the new Riverside Faire shopping center, Jacksonville, FL 32211. The owner will provide a minimumRead MoreSmall Business and Secret Acres Essay806 Words   |  4 Pagesrelationships with its customers and employees Simplified Record Keeping Independence Ability to adapt to change Enjoying the advantages of sole proprietorship (Being your own boss, being able to keep all the profits, the ease and low cost of going into business or maybe out of business, the ability to keep some business information secret), if you are the sole owner of a small business, you really don’t have to report to anyone as you would in a big business. Disadvantages: Risk of Failure Limited