Small-Business Idea Paper

Small Business Idea
Quincy Williams
ACC/561
March 4, 2013
George Bray

Small Business Idea
There are numerous of people in today’s society were planning an event such as birthdays, anniversaries, and weddings is high stress and complicated. Starting an event planning company will be a great idea for small business. This will be a great opportunity for the fast pace society of today’s flow. Being able to solve an issue such as planning an event large or of the smaller scale is a high benefit and brides, family reunion hosts and children preparing for their parent 's anniversary celebration could all use a little help planning. To start such a business first you should get an organizer equip to hold client personal information, make contact with caters and holders of up-scale venues, and gather as much local resources as possible.
Sole Proprietorship
A Sole proprietorship is the most common type of business. The advantages of a sole proprietorship are there will be no papers to file with the state and the sole proprietor has complete control over the business with the power to make all decision. A sole proprietorship also has a minimal startup cost. A key disadvantage of a sole proprietorship is the risk of personal liability, for there is a lack of protection with this form of business.
Partnership
A partnership is a business establish with more than one owner. With a partnership the owners have joint authority; this means that the owners have equal share in business agreements for the organizations. This will have the options of financing and borrowing cash greater, for there are two or more owners with collateral. More ideas and a better base for business development can come from partnerships. A disadvantage of a partnership is the liability of the other(s) business partners, and profits are shared as well as the decisions.

C Corporation
An C Corporations is the combining of many owners and is the choice for publicly traded companies. The tax rate is low on the first $100,000 in income, so a small business can benefit for using a C Corporation. Some disadvantages of a C Corporation are shareholder meetings, a board of directors is required, and there will be double taxation.
S Corporation
An S Corporation allows for owners to reduce self-employment taxes and has pass through taxation so that the income is passed to the shareholders of the company. A key disadvantage for S Corporation is that they cannot have more than 100 shareholders, and paying taxes on profits distributions they did not receive if profits are reinvested back into the company. A S Corporation is a company that enjoys the benefits of a incorporation but is taxed as if it is a partnership.
Financial Statements
The financial statements associated with a sole proprietorship include a balance sheet, statement of financial performance, statement in changes of owner 's equity, and statement of cash flows. The financial statements associated with a partnership include an income statement, statement of owner 's equity, and a balance sheet. The financial statements associated with c and s corporations include a balance sheet, income statement, cash flow statement, and financial forecasts (Roberts, 2012).
Tax Implications
Sole Proprietorship income is straight forward; it is income earned by the owner, the same as working a normal job. The IRS will not consider a sole proprietorship a separate business entity; this will make filing taxes simple as individual taxes. Sole proprietors report income, losses, and expenses by filling out, and filing a schedule c, and form 1040. The sole proprietor must also fill out, and file a schedule SE with the form 1040 to calculate how much self-employment tax is owed. Sole proprietors must pay unemployment tax on employees of the business. Partnerships are not issued a form w-2. Instead, the partners are issued a schedule K-1 form. Partners within the partnership may be liable for annual return of income, employment taxes, excise taxes, income tax, and self-employment tax. C corporations are taxed separately from shareholders. Salary is deducted as a business expense. Only C Corporations can split profits between retained earnings, and dividends. S Corporations must report profits as distribution. With and S Corporation profits and losses are past to the shareholders, which makes taxes only paid once. Another that found was that some states do not recognize S Corporation, which means that it will be taxed just as a C Corporation.
Legal Implications
Some legal issues that may occur with a sole proprietorship are the sole proprietor can be held liable for the employee’s actions. The sole proprietor risks his or her personal assets for employee conduct. Some legal issues that may occur with a partnership include registering the business name, drafting a partnership agreement, and obtaining licenses and permits. Partnerships may need to discuss, and agree on attorneys, and duties. In corporations, owners are not personally liable for the company 's losses or debts. The investments in the company are the only financial risk (McIntosh, 2012).
Accounting
Sole Proprietors and partnerships are responsible for their own accounting, which can be time consuming. Some sole proprietors and partnerships use third-party sources for accounting purposes. Inaccurate financial records can lead to tax, and legal consequences. Corporations choose their own accounting methods when filing a federal income tax return. A form 3115 is filed, and has to be approved by the IRS (Ardell, 2012).

Q’s Event Planning Q’s Event Planning will consist of top tier customer service and will make the customer life and events pleasurable. Q’s Event Planning will plan meals, create decoration, and find locations to hold the different events. Every phase of the event will be managed by Q’s Event Planning.
Q’s Event Planning will be a Sole Proprietorship; this idea was based on the information gathered with the current research. A Sole Proprietorship is the most common and also the easiest and least expensive way to start up a business. With this form of business, Q’s Event Planning owner will be the only decision maker. With the income of the business being part of the owner personal income, this will make filling taxes with the IRS simple and quick. This will be a low cost start up, so any profits will make and instance impact and will be put to expansion of the business. Also handing cash is much easier than the other business structures. The liability for starting a Sole Proprietorship is limited for the owner. However the owner will be responsible for accounting, insurance, human resources as well as any other laws and requirements set by the government.

References
Roberts, S. (2012). Financial Statements of a Sole Proprietorship. Retrieved from http://smallbusiness.chron.com/financial-statements-sole-proprietorship-14717.html
McIntosh, K. (2012). Legal, Social and Economic Issues with Opening a Partnership. Retrieved from http://www.ehow.com/info_8356027_legal-economic-issues-opening-partnership.html
Ardell, B. (2012). What are C Corporation Accounting Methods. Retrieved from http://www.ehow.com/info_7796117_corporation-accounting-methods.html
Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2009). Accounting: Tools for business decision making (3rd ed.). Hoboken, NJ: John Wiley & Sons.
Abrams, R. (2003). The successful business plan; Secrets & strategies (4th ed.). Palo Alto, CA: The Planning Shop.

References: Roberts, S. (2012). Financial Statements of a Sole Proprietorship. Retrieved from http://smallbusiness.chron.com/financial-statements-sole-proprietorship-14717.html McIntosh, K. (2012). Legal, Social and Economic Issues with Opening a Partnership. Retrieved from http://www.ehow.com/info_8356027_legal-economic-issues-opening-partnership.html Ardell, B. (2012). What are C Corporation Accounting Methods. Retrieved from http://www.ehow.com/info_7796117_corporation-accounting-methods.html Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2009). Accounting: Tools for business decision making (3rd ed.). Hoboken, NJ: John Wiley & Sons. Abrams, R. (2003). The successful business plan; Secrets & strategies (4th ed.). Palo Alto, CA: The Planning Shop.