American InterContinental University
The following paper is about the pros and cons of owing a sole proprietorship business compared to a general partnership or a corporation. States that sole proprietorships are the easies to start and have low start up cost but in hard times you can end up losing. Also you the business owner have the sole reasonability to the business debts that occur.
After researching what exactly a sole proprietorship, general partnership and a corporation I feel that I would like to have a sole proprietorship business. This means I will own and operate this business on my own. By having a sole proprietorship I will have the advantages of being my own boss. The business will be easy to form and also have a low start up cost. I will have some disadvantages of being personally liable for all debts of the business and also will find it difficult to borrow money for start-up costs or expansion. Sole proprietorships are the easiest type of business structure to start. Also this has become the most common type of business structure for business owners. With a sole proprietorship the owner is the business. He or she has complete control of the business and gets to make all the decisions. Also he or she gets all the profits the business makes as well as it being state on their personal tax return. The down side to owing a sole proprietorship is that the owner is reliable for all debts occurred. All actions of the business and employees are the owners’ reasonability to take care of. According to [ (Kleine, 2006-10-05) ]it is best for a sole proprietorship to use employee identification numbers than to operate under social security numbers. By doing show it shows that the you are serious about the business and also protects you when it comes to getting licensing forms and other contract that might comp before you when dealing with vendors and clients. By owning a sole...