Proprietorship Essays - Economy, Business, Structure, Business Law

Proprietorship The word proprietorship comes from a business organization that might be already owned by an individual. A proprietor is known as the proprietor. Many advantages of a sole proprietorship consists of: minimum formation costs, less formal business requirements, no corporate tax payments, complete manipulation over a business, the proprietor(owner) has the power over sale or transfer assets, don't need to wait for the others to make a decision.However, proprietorship has its own severe disadvantages. One of them can be the responsibility for obligations of the business, including debt that the company owe. The owner of the business has to file severals forms that are needed for the business name and operations. If a business is set up as a proprietorship, that business is not taxed, due to the determination of profits and losses by the owner of the business. Partnership A business that owned by two or more individual is known as partnership. They are able to share profits and liabilities of a business venture. Having a partnership business can be very beneficial in various ways. One of the advantages of having a partnership is the capital. Because of the nature of the business, the partners are able to fund the business together in order to get the business started with the start up capital. Another advantage of partnership is flexibility. A partnership is usually very easy to form, manage and run the business. Partners are able to share responsibilities to one another in order to run the business smooth. Partners can share their decision to see if others agree and if it's a good decision for the business, as well as, helping each other out when they need to. However, there is always a dark side to everything as many of the people mention. The disadvantages of partnership can be a deal breaker. The liability of the each individual or partners for the debts of the business or the corporation is unlimited. RIsk of disagreements and friction are very possible to exist among the partne rs and management. Each individual or partner is considered an agent in the world of partnership and they are liable for actions that are performed by the other partners. Corporation A corporation can be considered as a company or a group of individuals who are authorized to perform as a single entity or article, most of the time by law, it's a person, and is considered such by the law. Being involved or even better owning a corportion has its own advantages and benefits. An advantage can be limited liability. The shareholders of the corporation are only able to go in debt as much as their investment only. The corporate entity or article prevents them from any further liability. Source of capital can be another one. If a corporation is held publicly, in particular it can raise considerable and significant amount of money by selling shares or we have another option in which you can issue bonds. This one is my favorite. Perpetual life. There are no limitations in the corporate world for the company. The ownership can be passed through many generations of investors. However, again there are several disadvantages to owning a corporation. Every Corporation is subjected to double taxation. They are taxed on a corporate level. But the shareholders in which receives dividends from the corporation are taxed on a personal level. You are also obliged to pay self-employment taxes, in which case you are an employee of the corporation or the company. As well as, paid dividends cannot be deducted from taxable income and much more. Franchise A franchise is an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities. Starting up a business that franchising, it will be wise decision to make to take, because it will boos toyur business due to to its credibility and popularity. Just like the previous ones, franchise has its own advantages as well. Franchises allows to have the independence of small business ownership in which is back up and supported by the benefits of a big business network. Franchises tend to have a higher rate of success than start-up businesses. Some might find