Types of Businesses

In: Business and Management

Submitted By scoopyman1
Words 1588
Pages 7
a1
PART A
SOLE PROPRIETORSHIP
A sole proprietor operations are often called mom and pop businesses. They are usually run by a single person, the owner, or run by a very small staff.
• Liability: The owner is liable for all debts accrued by the business. This means creditors are entitled to recoup and debts through business and personal assets.
• Income taxes: A sole proprietor files their business taxes along with their personal taxes. Typically when filing taxes the form that is files is the 1040. The owner would just need to file a Schedule C form along with their 1040.
• Longevity or continuity of the organization: In the event that the owner dies normally the business dies also. Unless the owner has a qualified heir to pass the business to it will cease to exist.

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• Control: As stated above, typically sole proprietorships are completely autonomous. The owner has total control over day to day operations. He also has to final word on all decisions associated with the business.
• Profit retention: The owner keeps 100% profits gained.
• Expansion / Location: To expand or relocate business the owner only needs to make sure they obtain any licensing or permits required by local or state law. Also, if operating in a name other than their own, they must make sure the business name is legally available for use.
GENERAL PARTNERSHIP
A general partnership is where there are two or more that own a business with equal powers. To establish a partnership there must be a oral or written contract between all parties. To protect each partner should any issues arise and need court intervention a written contract is suggested covering expected duties for each partner.
• Liability: All partners share liability equally. They share all profits and debts accrued. Personal assets are fair game.
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• Income taxes: Partnerships are free from having…...

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