ASSIGNMENT: Please respond to the following: Define the following types of business ownership. Sole Proprietorship Partnership Corporation Limited Liability Company For each...

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Finance

ASSIGNMENT:
Please respond to the following:
Define the following types of business ownership.
Sole Proprietorship
Partnership
Corporation
Limited Liability Company
For each of the types of business ownership listed in #1 above,list the pros (advantages) and cons (disadvantages). Be sure to payclose attention to liability and tax treatment for each type ofbusiness ownership.
If you were starting a new business, which of the five types ofbusiness ownership listed in #1 above would you choose? Why? Beforeyou make a decision, review your pros/cons list for each type thatyou prepared in #2. To maximize your grade, be sure to providedetailed support for your choice.
Requirements:
Minimum Page Length – 2 full pages

Answer & Explanation Solved by verified expert

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Particulars Meaning Advantages Disadvantages Sole Proprietorship The sole proprietorship is a popular business form due to its simplicity ease of setup and nominal cost A sole proprietor need only register his or her name and secure local licenses and the sole proprietorship is ready for business A distinct disadvantage however is that the owner of a sole proprietorship remains personally liable for all the businesss debts So if a sole proprietor business runs into financial trouble creditors can bring lawsuits against the business owner If such suits are successful the owner will have to pay the business debts with his or her own money The owner of a sole proprietorship typically signs contracts in his or her own name because the sole proprietorship has no separate identity under the law The sole proprietor owner will typically have customers write checks in the owners name even if the business uses a fictitious name Sole proprietorships can bring lawsuits and can be sued using the name of the sole proprietor owner Many businesses begin as sole proprietorships and graduate to more complex business forms as the business develops Owners can establish a sole proprietorship instantly easily and inexpensively Sole proprietorships carry little if any ongoing formalities A sole proprietor need not pay unemployment tax on himself or herself although he or she must pay unemployment tax on employees Owners may freely mix business and personal assets Owners are subject to unlimited personal liability for the debts losses See Answer

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ASSIGNMENT:Please respond to the following:Define the following types of business ownership.Sole ProprietorshipPartnershipCorporationLimited Liability CompanyFor each of the types of business ownership listed in #1 above,list the pros (advantages) and cons (disadvantages). Be sure to payclose attention to liability and tax treatment for each type ofbusiness ownership.If you were starting a new business, which of the five types ofbusiness ownership listed in #1 above would you choose? Why? Beforeyou make a decision, review your pros/cons list for each type thatyou prepared in #2. To maximize your grade, be sure to providedetailed support for your choice. Requirements:Minimum Page Length – 2 full pages