FIN 571 Week 2 Sole Proprietorship
The first option is that of sole proprietorship. This option is the simplest business structure available. It is the least regulated form of business and with the lowest income taxes than most of the corporations (Parrino, Kidwell, & Bates, 2012). The business will be operated by yourself so that you will be in charge of the business from business liabilities, debts, and losses. The disadvantages of a sole proprietorship are that the amount of equity capital that can be invested is limited to the amount of assets owned by the individual and the individual has unlimited liability for all debt and obligations of the proprietorship (Parrino, Kidwell, & Bates, 2012). Also the owner you receive all profits made by the business, but must pay personal income taxes on all the net profits from the business. The taxes for the business are claimed on your personal income tax forms since the business does not claim separate income taxes.
The first option is that of sole proprietorship. This option is the simplest business structure available. It is the least regulated form of business and with the lowest income taxes than most of the corporations (Parrino, Kidwell, & Bates, 2012). The business will be operated by yourself so that you will be in charge of the business from business liabilities, debts, and losses. The disadvantages of a sole proprietorship are that the amount of equity capital that can be invested is limited to the amount of assets owned by the individual and the individual has unlimited liability for all debt and obligations of the proprietorship (Parrino, Kidwell, & Bates, 2012). Also the owner you receive all profits made by the business, but must pay personal income taxes on all the net profits from the business. The taxes for the business are claimed on your personal income tax forms since the business does not claim separate income taxes.
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