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Business Types

In: Business and Management

Submitted By Jayjaybaby2000
Words 1535
Pages 7
Sole Proprietorships
Sole Proprietorship is a business entity owned and operated by one individual. This type of business organization is relatively inexpensive to start. The pros of the sole proprietorship are easy to start, the owner is able to retain his profits and the owner has sole control of business decisions. The cons of sole proprietorships are unlimited liability, limited financial resources, harder to get additional financial resources for example loans, limited growth, and limited life span.
1) The owner/operator is solely liable for the business and if the business is sued, the owner is liable for any and all judgments rendered. The owners personal assets are not protected.
2) The owner/operator reports the income taxes on their personal tax form. The owner is able to deduct business expenses.
3) The longevity of a sole proprietorship is not guaranteed. If no arrangements are made to continue business, business will not continue upon the death of the owner. “Sole Proprietorships are terminated upon the death of the proprietor. Until the business is assumed by a new owner the business remains a part of the deceased proprietor’s person’s estate.” (Bartschi, 2001, pg 21)
4) The owner/operator has total control over all the decisions that need to be made in regards to the business.
5) The owner/operator retains all profits.
6) If the owner or operator chooses to relocate his business, all he will need to do in the new location is fill out a new DBA (How to Move Your Business,LLC or Corporation to Another State, 2012)
7) There are no additional requirements placed on the business to comply with regulatory requirements because a sole proprietorship is not bound to comply with any.
General Partnership
General Partnership is a partnership where all owners share in operating the business and both assume liability in the business. Some of the pros of

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