BUSINESS PLAN FOR NEW INVENTION
This is a business plan for a new invention. It will discuss three different types of businesses and will cover the advantages and the disadvantages of each type of business. In the end, it will show which business type was chosen and why.
The invention will take a lot of money to start up but should produce a great deal of money. While there are little financial skills and no management skills, the company believes that the invention will be wide spread and well used. Sole proprietorship has many advantages and disadvantages. Some of the advantages are: ease of startup, limited ownership, simple taxation and few government and IRS regulations and are the simplest to dissolve (Editorial Board, 2011). A disadvantage is: the owner’s personal assets are not protected in the event of lawsuits or business failures (Editorial Board, 2011). Partnership, too, has many advantages and disadvantages. The advantages of partnership are: ease of startup, simple taxation, limited ownership, few government and IRS regulations (Editorial Board, 2011). The government and IRS regulations can be both an advantage and a disadvantage. The disadvantages are: no limited liability and dissolving a partnership can be difficult (Editorial Board, 2011). Last, is corporation. Corporations, just like the others, have its advantages and disadvantages. The advantages of a corporation are: unlimited ability to raise funds and no liability to stockholders (Editorial Board, 2011). The disadvantages are: double taxation, many people to answer to, not easy to startup, subject to many government regulations and lots more in paperwork (Editorial Board, 2011). The inventor and business owner has chosen to go with the sole proprietorship because of many reasons. The inventor wants to remain the sole person in control over the business. The inventor doesn’t want to go through all the red tape involved in having the...
References: Editorial Board. (2011). Introduction to business. Schaumburg, IL: Words of Wisdom. Retrieved from https://mycampus.aiu-online.com/Pages/eBook
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