business forms worksheet week2
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 in order to form that business? Discuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages
1. Minimal legal costs to forming a sole proprietorship.
2. A sole proprietor has complete control and decision-making power over the business.
3. Few formal business requirements.
Disadvantages
1. All responsibilities and business decisions fall on the shoulders of the sole proprietor.
2. Creditors for the business can go after the sole proprietor's personal assets.
3. Limited finance options.
Summary
The sole proprietorship is the simplest form of business, which is inexpensive and easily set up.
Businesses that operate on a shoestring budget with virtually no debt, such as a small lawn-care business, can present very little financial risk to company owners. Lawn-care business with historically low rates of legal trouble do not necessarily need protection from legal liability. Each state, city, and county have their own laws about which business licenses are required. A sole proprietorship may only need a business license from the city or county, and a occupancy permit or fire department permit.
One has to make sure that the right to use the chosen business name by checking with the appropriate city office, get a fictitious business name statement by registering it, apply for an employer ID number. with the IRS using Form SS-4, and apply for a state ID number with the Department of Revenue if the
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 in order to form that business? Discuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages
1. Minimal legal costs to forming a sole proprietorship.
2. A sole proprietor has complete control and decision-making power over the business.
3. Few formal business requirements.
Disadvantages
1. All responsibilities and business decisions fall on the shoulders of the sole proprietor.
2. Creditors for the business can go after the sole proprietor's personal assets.
3. Limited finance options.
Summary
The sole proprietorship is the simplest form of business, which is inexpensive and easily set up.
Businesses that operate on a shoestring budget with virtually no debt, such as a small lawn-care business, can present very little financial risk to company owners. Lawn-care business with historically low rates of legal trouble do not necessarily need protection from legal liability. Each state, city, and county have their own laws about which business licenses are required. A sole proprietorship may only need a business license from the city or county, and a occupancy permit or fire department permit.
One has to make sure that the right to use the chosen business name by checking with the appropriate city office, get a fictitious business name statement by registering it, apply for an employer ID number. with the IRS using Form SS-4, and apply for a state ID number with the Department of Revenue if the