SOLE PROPRIETORSHIP: A “for profit business” owned and operated by an individual. Owning a sole proprietorship allows an individual to run a business any way they see fit with few state/federal regulations and limited legal formalities. The owner of a sole proprietorship assumes considerable risks by without liability protection and therefore is held personally liable for any judgments against the company and is susceptible to loss of business assets, personal property and real estate.…
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.…
CONTROL – The business is controlled by the single business owner. The control cannot be passed to another person.…
Facts of Situation A as it pertains to the Family and Medical Leave Act of 1993 (FMLA).…
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 few tax breaks and fewer deductions allowed when comparing other business types or formations. Business income is taxed only one time and is reported on a personal tax form. Washington State, where I live, has no state income tax but the proprietor must still pay Federal income tax on the profits. Continuity/Longevity – The business with a sole proprietor can run as long or as short as desired by the business owner. Death is where the business would naturally end, unless prior arrangements were made to transfer ownership to another individual. Control – The owner (individual) is in complete control of the business direction and choices. Profit Retention –The profit is retained by the owner, assuming all bills and employees are paid, the money left over can be considered profit for the owner. Location – The location of the Sole Proprietorship should be wherever the business owner/business is located. Expansion to multiple states is less likely to occur, though if it happens the owner just needs to create a new Doing Business As (DBA) in the new state of choice. Burden/Convenience – The burden and convenience are the challenges and benefits of being a business owner, being the sole responsible party for success and failure alike, no external requirements like meetings or other regulations are required though.…
Liability – Each person has unlimited personal liability for the business. Like a sole proprietorship, any debt incurred by the business will have to be covered personally by the partners.…
The sole proprietorship is the most basic type of business. Anyone can start one with little effort. As long as the owner’s name is in the name of the business, no paperwork is necessary. The following advantages and disadvantages exist with a sole proprietorship:…
But to clarify what is actually required, you only need to describe the 6 of 7 characteristics; you don’t need to list Disadvantages/Advantages nor a brief description. The reason: 1) the info for your advantages/disadvantages/brief description and bullet list essentially is the same so you'd see redundant work and 2) if you look at the rubric for Task 1, the only metric is that you have 6 of 7 characteristics for each business organization - there is no metric for brief description nor advantages/disadvantages.…
Sole proprietorship is statistically the most common business form for in the United State. The business is unincorporated owned and operated by one individual. An advantage of sole proprietorship is the business can be simple and inexpensive to start. A Disadvantage of sole proprietorship is being the only thinker for ideas for decision making, advertising, etc.…
Sole Proprietorship: The most common form of business in the United States. A business operating under Sole Proprietorship is run only by the owner of the company. All decisions are made solely by the owner without the need to have legal consultation. The business only needs to register the business name with the government if the owner choses to use a business name rather than his/her personal name.…
A sole proprietorship is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. The IRS does not consider the sole proprietorship as a separate business entity. The owner reports all business on Form 1040.…
A sole proprietorship is the best business structure for those starting out with limited funds and wanting complete authority over all business decisions. If you decide to become a sole proprietor, you would have complete authority over all decisions regarding your business. Unfortunately, you would also be personally and completely liable for any expenses and debts your business incurs. Because of this, you, the owner, must keep sufficient records to fulfill with federal tax requirements regarding the business. Your net business income is joined with your other income and taxed at individual rates on your personal tax return. Sole proprietors must also pay self-employment tax.…
Sole proprietorships are the most common way of doing business in the United States. Legally, there is no difference or distinction between the owner and the business. The legal name of the business is the owner’s name, but owners may carry on business operations under a fictitious name by filing a d.b.a. filing. Sole proprietors enjoy ease of start-up, autonomy, and flexibility in managing their business operations. On the downside, they have to pay ordinary income tax on their business profits, cannot bring in partners, may have a hard time raising working capital, and have unlimited liability for business debts.…
“Sole proprietorship is the simplest form of business organization. The owner of the business the sole proprietor is the business” (Cheeseman, 2010 p.530) advantages to this form of business is that it is easy to form and does not cost much in regard to monetary allocation. The owner makes all the decisions and owns all of the business and its profits.…
The vast majority of small businesses start out as sole proprietorships. These firms are owned by one person, usually the individual who has day-to-day responsibility for running the business. Sole proprietorships own all the assets of the business and the profits generated by it. They also assume complete responsibility for any of its liabilities or debts. In the eyes of the law and the public, you are one in the same with the business.…