Sole Proprietorship, Partnership, or Corporation - 1822 Words

BUSINESS PROSPECTS OF â€Å"THE THUNKER† 1 BUSINESS PROSPECTS OF â€Å"THE THUNKER† Elizabeth Alfred Bus105 October 2010 BUSINESS PROSPECTS OF â€Å"THE THUNKER† 2 Business owners can form sole proprietorships, partnerships, or corporations. Each type of business entity has its pros and cons that can have a significant impact on the business and its owners. When considering a new product for a saturated market such as the clicker or the three-pronged power cord, there are several pros and cons to consider with each possible choice. Although the author personally has no inventive talents†¦show more content†¦Advertising and growth would necessitate investigating deeper pockets then the ones typically available to you and me. This brings us to the possibility of a partnership. Set-up expenses are still at a minimum, and the legal documentation required to form a partnership is simpler, more straightforward, and less complicated than what is needed for incorporation. Partners have more motivation than the investors that might be scrounged up in a sole proprietorship or a larger more expansively financed incorporation; as they directly share in the profits and most immediate business decisions. There are improved growth capabilities, something much more limited in a sole proprietorship, and generally it is easier to procure capital and further funding for financing a business operating under a partnership than it is for a sole proprietorship. The funding for startup costs and expansion is pooled with the r esources of all partners. Multiple skill sets are brought to the benefit of the business as well. There is more flexibility found in decision making then with the multiple and varied investors of an incorporation. For this particular scenario, with the limited funding and growth costs of an individual family on a budget, but potential to tap a saturated market and create an unlimited amount of demand, and thereby an unlimited amount of profit, a partnership would be a vast improvement for the possibilities of â€Å"The Thunker† over a sole proprietorship. There are someShow MoreRelatedSole Proprietorship, Partnership and Corporation Business Types1244 Words   |  5 PagesAbstract Starting a business with no funds or management experience can prove to be difficult. Comparing and contrasting, for the sole purpose of deciding which business type would be beneficial to the scenario given three business types were discussed. Sole proprietorship, partnership and corporation were reviewed. The outcome chosen was partnership being as it relates best to the scenario discussed. The idea of opening a business is not one to take lightly. Being an inventorRead MoreDifferences Between Sole Proprietorship, Partnership, And Corporation841 Words   |  4 Pagesdifferences between sole proprietorship, partnership, and corporation? a. Differences: A sole proprietorship is a business that has a single owner who is responsible for making decisions for the company. A partnership consists of two or more individuals who share the responsibility of running the company. A corporation is one of the most recognizable business structures and has a separate identity from the owners of the company. One or more owners may participate as shareholders of a corporation. b. Similarities:Read MoreTypes Of Business Forms : Sole Proprietorships, Partnerships And Corporations2204 Words   |  9 Pageswithin the organization and to what extent are they willing to be liable for the business’s actions. This paper will look at three types of business forms: sole proprietorships, partnerships and corporations. 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According to CaliforniaRead MoreTypes Of Business Structure, Sole Proprietorship, Partnership, Llc, And Corporation1783 Words   |  8 PagesThere are different aspects of each type of business structure, sole proprietorship, partnership, LLC, and corporation. A sole proprietorship is â€Å"a business owned and operated by a single person. The business has no legal existence from its owner† (Rogers, 2012). This also means that the sole proprietorship is liable for everything, debts, lawsuits, taxes, etc. In a partnership, â€Å"an association of two or more competent persons to carry on a business as co-owners for profit. The business itselfRead MoreBusiness Structure644 Words   |  3 Pages3 different forms: sole proprietorship, partnership or corporation. Sole Proprietorship Sole proprietorships are businesses that are owned by a single person. A sole proprietorship is the easiest to form and the most common form of business. One advantage of this type of business structure is that it is quite simple and easy to start and launch. Another advantage is that the owner has complete control over the business and fairly easy tax preparation. Sole proprietorships have no hard regulationRead MoreEssay on Legal Forms of Business939 Words   |  4 Pagesthe business as well as your potential for financial returns (Page 6 of 17 - How to Incorporate | Inc.com. (n.d.). Retrieved from http://www.inc.com/how-to-incorporate/130). The three different types of legal business forms are sole proprietorship, partnership and corporation. All of these have their advantages and disadvantages. Asking those questions and exploring the advantages and disadvantages, a potential business owner will be capable of deciding which legal form they should pursue. WhatRead MoreTaking a Look at Different Forms of Business1394 Words   |  6 Pagestheir situation. Sole Proprietorship Sole proprietorships are the simplest and most common form of business. This form of business is generally owned by a single owner. The advantages of a sole proprietorships are that they are easy to setup and the owner has total autonomy of day-to-day operations of the business. There are some disadvantages to forming a business as a sole proprietor. As the sole owner, the business is limited on capital and resources for running the business. A sole proprietor isRead MoreThe Legal Forms Of Business1329 Words   |  6 PagesFirst of all, there are three legal forms of business, which consist of sole proprietorships, partnerships, and corporations. People can run a business in these three types of ways, which in some ways each type of business has its benefits and has its losses. Also, setting up a business needs to be planned out, and have expectations on how the business needs to run. People can’t just go out and start a business without having any plans. If a person did tha t, then that business would not last longRead MoreEssay On Business Structure1350 Words   |  6 Pagescompany structures Sole Proprietorship, General Partnership, Limited Partnership, S/C Corporation, and Limited Liability. Which have not honored the contract and are at risk for legal actions. The various liabilities between each owner will be discussed. Which will analyze ways to limit liability and display my future business structure. Now, let’s start with A sole proprietorship which is a business owned by only one person. According to Sole Proprietorship Taxes, a sole proprietorship is the easiest