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Res 351 Week 1

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Res 351 Week 1
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 to frequently asked questions. The guide is a resource for preliminary planning—not a replacement for the services of professionals. Tax and legal professionals should be considered before final decisions are made.
Business Structure
One of the first considerations in establishing a business is to determine the type of business organization to select. You should study and analyze the advantages and disadvantages of each as well as the legal and tax considerations before a final decision is made. A brief description of the four common business organizations is listed below.
Sole Proprietorships
Many small businesses choose sole proprietorships for their business structure. A single owner is responsible for the business and retains all profits. The procedure to start a sole proprietorship is relatively easy. The amount of paperwork is much less than other types of businesses, and there are fewer regulations to follow. One disadvantage for this form of business structure is unlimited personal liability for the debts and liabilities of the business.
Partnerships
A partnership involves two or more people. When a partnership is formed, a legal agreement is usually prepared to detail the contributions or investments of each partner, the responsibilities of each partner, the distribution of profits and losses, and the terms to follow should the partnership dissolve.
Limited Liability Companies
Limited Liability Companies are also known as LLC. Limited Liability Companies
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