Premium Essay

.Lit1.310.1.2-01-06 Part a

In: Business and Management

Submitted By Bwilliams21
Words 1791
Pages 8
Forms of Business Organization
Forms of Business Organization

Bruce J. Williams- ID# 000425916
Legal Issues in Business Organizations (LT1)
Task 1
By
Bruce J. Williams- ID# 000425916
Legal Issues in Business Organizations (LT1)
Task 1
By

Forms of Business organization
There are seven characteristics used to determine a business organization; Liability,
Income taxes, Longevity or continuity of the organization, Control over decision making,
Profit retension, Expansion/ Location, and Compliance/Convenience/Burden
Sole Proprietorship
The sole proprietorship is the simplest form of business it is not a legal entity. It is best described as one person who owning a business and is personally responsible for the business debts.
There is unlimited and unshared finanicial liability in a sole proprietorship. The assets * and liabilities whether it be business or personal are not differenciated. * A sole priprietorship and the business is taxed as a single unit. A 1040 form is filed * with a schedule C which shows a profit or loss. Any income from a sole proprietor * business are personal profit. It is a pass through taxation, there is not a seporate * federal income tax to report. * The longevity of the sole proprietor is a disadvantage because when the sole proprietor * dies the business also dies and there is no longer an income. The business ceases to * exist without an option to leave an heir. * The sole proprietorship has one person in control, the owner with unlimited choices * and unshared responsibility for day to day operations. * The sole proprietorship has sole gain in relation to profits. There are no partners or * stockholders. * The proprietor may expand or relocate the business operations at will. It has the * responsibility to apply for the appropriate state or...

Similar Documents