Week 3 Individual Assignment Business Forms Worksheet

Week 3 Individual Assignment 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.

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1. Select one of the forms of business
2. Research and provide three advantages and three disadvantages for this business form.
3. Provide a 100- to 200-word summary in which you provide an example business for each form. Discuss at least one of the advantages and one of the disadvantages of that form and potential legal forms that might be required.

Business Form:

Advantages

Disadvantages

Summary

Week 3 Individual Assignment 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 thatyou 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 Advantages1.The sole proprietor has control of their business.2.The sole proprietor can sell the business without seeking approval from other
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BUSINESS FORMS WORKSHEET3business partners.3.The sole proprietor will incur fewer costs when starting the business.Disadvantages1.The sole proprietor can be held personally liable for the costs and debts created by the business and the employees of the business.2.The sole proprietor will not usually have the financial backing of investors.3.The sole proprietor typically relies on loans and their assets to finance their business.SummarySole proprietors are small businesses that are easy to establish. Examples of sole proprietorship are starting a cupcake store, opening a salon, or any other business that the business owner wants to start on their own. A disadvantage is that sole proprietors usually must take out loans, and repayment of the loans is imperative because the creditors can take personal possessions when trying to collect the debts incurred by the small business. Sole proprietors report their earnings on their personal income taxes. The sole proprietor will file the Internal Revenue Service (IRS) form 1040and report the business income on the Schedule C attachment. The sole proprietor will
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BUSINESS FORMS WORKSHEET4need to check with their city and state governments to see if a business license is needed to be able to file their taxes correctly. An advantage of being a sole proprietor isthat the owner can operate as the business demands and establish working hours according to their schedules.Partnership Advantag