...Small Business Idea University of Phoenix Accounting Acc/561 Norsey Dorris June 27, 2012 The government has decided to kick start another program to release funds for small businesses across the country. This can be an exciting and overwhelming experience at once to start-up a new business, especially with the help of federal funding. To incorporate or not to incorporate, that is the question. There are many decisions to make once a business idea (hopefully a business plan has been created) is ready to launch. Whether it is a small restaurant, local liquor store, or an auto repair shop, one of the main decisions is to what type of organization or business entity to create. There are four main forms to choose from: Sole Proprietorship, Partnership, C Corporation, and S Corporation. Sole Proprietorship A sole proprietorship is one of the easiest and main ones for a small business owner. The business will be owned by one person and it is simple to set up and gives the individual control over the business (Kimmel, Weygandt, & Kieso, 2009). The sole proprietor can run the business for any duration of time and sell it when he or she sees fit. The person can also pass the business to down to his or her heirs. In addition, compared to corporations, a sole proprietor will receive favorable tax advantages. The owner will pay taxes on his or her personal income, which is more favorable than the double taxation that occurs in corporations. Paperwork,...
Words: 1203 - Pages: 5
...Small Business Idea In an attempt to boost the economy, the government announced plans to release funding to individuals for use in starting up small businesses. Starting a new business requires an understanding of the advantages and disadvantages associated with the different forms of business which include sole proprietorship, partnership, C-corporation, and S-corporation. Although here are many benefits to each form of business, there are also consequences ranging from tax implications, legal implications, and accounting implications. To make the best choice regarding the form of the business, a restaurant, further analysis into the restaurant goals, different forms of business organizations available, and the advantages and disadvantages that these forms of business have on the restaurant are all important factors that must be considers prior to making a final decision. Forms of Business Organizations The easiest and most affordable form of business is a sole proprietorship structure. By opening the restaurant as a sole proprietor, the one owner is able to control all aspects of the business decisions without being required to consult with another individual. With a sole proprietorship, the owner files taxes as an individual since all profits and any losses are the obligation of the sole owner. Through the Internal Revenue Service (IRS), the owner can apply for an employer identification number used for tax purposes linked to the business or the owner can choose to use...
Words: 1050 - Pages: 5
...Small Business Idea Paula Boyce University of Phoenix Accounting ACC - 561 Professor Trenda Hackett December 07, 2011 Small Business Idea The government has released fund for creating small businesses. One’s interest is to establish a small business and must determine which of the four forms of business organization will best suit the business chosen. Legal, tax, accounting, and other implications when selecting from the four business types are matters of considerations (University, 2008 - 2011). The four forms of business include Sole proprietorship, Partnership, C Corporation, and S Corporation. Discussion will explain advantages and disadvantages of the four forms of business, financial statement associated with each form of business organization, and the consequences of tax implications, legal implications, and accounting implications such as SOX and FASB. An explanation what one’s business provides, the choice of one’s business organization form, and one’s rationale for choosing the form of business organization chosen (University, 2002). Sole proprietorship advantages and disadvantages Sole proprietorship is the most common and simplest form of business. An individual owns and manages the business and is responsible for business transactions and responsible for debts and liabilities incurred (AllBusiness.com, 2007, p. 1). Advantages of sole proprietorship is the proprietor is in full control of the business, no corporate taxes, legal cost is...
Words: 1307 - Pages: 6
...Small-Business Idea Paper University of Phoenix ACC 561 Small-Business Idea Paper There are numerous factors affecting the type of business organizations that an owner should form, so that it is most beneficial for him and the product or services provided. In this paper, the four business structures are evaluated and the association of the legal, tax and accounting implications with the different structures are also discussed. Suppose that the government has released funds to set up small businesses, I would set up a language services company. The services will include translation, transcription, interpretation, copywriting and proofreading. Most companies nowadays provide services internationally. It is, therefore, important to be able to understand each other, not only in English but also in the local language. The different forms of business organizations are evaluated first before deciding which form best suits the services provided. Sole proprietorship is the simplest business form and refers to a single person operating the business on his own. The advantages include the ease of establishment (most sole proprietorships can be started with a low initial capital), full owner control and tax advantages (Kimmel, Weygandt & Kieso, 2009). Legally, the sole proprietor is fully liable for everything in the business and if the business fails, he is fully responsible to clear all debts. In most cases, sole proprietors have favorable tax advantages because they just pay...
Words: 1147 - Pages: 5
...Running head: SMALL BUSINESS IDEA PAPER 1 Small Business Idea Paper Napoleon Melton, Jr. ACC/561 September 5, 2011 James Sullivan SMALL BUSINESS IDEA PAPER 2 Small Business Idea Paper Establishing a small business requires the cultivation of a business idea to a business plan that successfully outlines its unique product or service, the rationale for choosing the business organization in particular for the unique product or service, and the financial statements & implications associated with the formation of the business organization. In my small business idea paper, I will discuss my small business’s unique product or service and the rationale for my small business’s business organization formation. Small Business Unique Product or Service Spartanburg, South Carolina needs a diverse establishment in the downtown area that can cater to families, high school students, college students, young professionals, and adults as well as drive growth in the downtown area. Why? The Spartanburg area is more conducive for families and older adults than high school students, college students, and young professionals. High school students should have a place that they can hang out and have fun in. There are numerous bars for the college and the young professional crowd but are basically the same in terms of what entertainment they offer (predominately rock and acoustic acts). The downtown area has undergone renovations in the past couple of years, adding establishments...
Words: 1243 - Pages: 5
...1. Small Business Idea Paper 2. Introduction The Federal Government has allocated suitable funds for potential entrepreneurs and prospected business types who seek to further engage in economic acquisition or create a new element of capital in order to foster the current economy with a potential small business venture. I have chosen to acquire these much needed resources in order to create my small business and join the field of Security in Protective Services. My company is entitled RSJ Security Services, it is an up and coming business founded by Roberto Santiago Juarez, who is a skilled Security Officer, Post Commander, and Operations Manager of seventeen years within the Security Field located in Las Vegas, Nevada. The new company will provide jobs for the community and protect local business interest. With the social climate being in the state of frame that it is in, RSJ Security Services will become a positive element in the field of security. RSJ Security Services will focus primarily on clients and community interests, as well as employee needs. 3. RSJ Security Services will employee an experienced security staff, appealing to experienced security personnel, and present, and former military personnel, and implement based on client contracts using full time officers. RSJ Security Services will begin by having one employee, and that is the owner Roberto Santiago Juarez at the time of the launch of the company. With over seventeen years of experience...
Words: 1536 - Pages: 7
...Small Business Idea Tina Sergio ACC/561 Week 1 February 5, 2013 Bobby Bates Small businesses and entrepreneurs form the backbone of the U.S. economy. Since early America, entrepreneurs have generated ideas that create opportunities so other people were able to begin their own company, and, it is likely that new entrepreneurs will continue to do so for the foreseeable future. The government is aware of this and periodically releases funds in order to encourage new business ventures with the intention these businesses create opportunity for new development and employment in our economy. With such a task to live up to, business founders and owners must understand the practices associated with forming a business, and what is most effective for making a business successful. Image Solutions is a consulting business that is dedicated to this task. By working with organizations, Image Solutions helps in the design and implementation of programs that support the business mission and empower human behavior that will contribute to the success of the entire business. Image Solutions clients include individuals as well as businesses, public and private, for profit and not for profit, and early stage ventures and already established companies. In order to fully commit to this mission, Image Solutions must provide a foundation toward...
Words: 1630 - Pages: 7
...Small Business Idea Paper University of Phoenix ACC/561 September 24, 2012 Introduction It has been published in the news media that the government of the United States will open up some opportunities for businesses by releasing some funds. This week’s assignment is to discuss the forms of business organizations. Also, the intent of this paper is to discuss the accounting structure for the lending process along with all the legal documentation. The intent of the paper will also discuss starting up a small business which will be a spa and massage parlor on St. Simons Island, Ga. while also evaluating the pros and cons of the four types of business organizations. The four types of business organizations that we will discuss are which are sole proprietorship, partnership, a C corporation, and an S corporation. All businesses have to choose what business form they want to operate the business in. There are four main business organizations that are used in the business environment today that has been mentioned previously. It has to be decided before the process begins what type of organization the owner wants. A sole proprietorship is a business owned by a single person (Kimmel, Weygandt, & Kieso, 2009). An advantage of sole proprietorship is it is simple to begin and allows the owner to have the decision making over the business (Kimmel, Weygandt, & Kieso, 2009). The pro for a business person who has the desire to start...
Words: 1183 - Pages: 5
...Small-Business Idea Vanessa Singleton ACC/561 May 20, 2013 Aaron Strenkoski Small-Business Idea Due to the government releasing funds to establish small businesses, my vision of owning a spa becomes a reality. Starting a new business is challenging, a potential business owner should develop a well thought out business plan to set their venture into action. As a business owner, I have to take into consideration which of the four forms of business organizations best suit my services. I must consider the legalities, taxes, and accounting implications associated with my type of business organization. This paper will explain the advantages and disadvantages of the four business forms, the legalities, taxes, and accounting principles associated with each form, and the type of business form that suits the services provided by my business. Sole Proprietorship Sole proprietorship is the most common and simplest form of business. It is a business of one, where the individual represents the business legally and fully (Zahorsky, 2013). Setting up a sole proprietorship does not require registration of the business however, if you are planning to use another name or business name to operate your company, state laws will require a trade name registration or filing of your company name. The advantages of a sole proprietorship include: • Quicker tax preparation - As a sole proprietor, filing taxes is easier than a corporation. Simply file an individual income tax return (IRS...
Words: 1795 - Pages: 8
...Starting a business can be an exciting, yet overwhelming experience. Before you can launch your business venture, deciding the form of business organization will be one of the first things necessary. Some of these business organizations include; sole proprietors, corporations, and partnerships. With choosing which organization to go with one must consider consequences in lieu of legal issues, taxes, financial statements, and accounting practices. A new business venture will be summarized along with the business organization type and related consequences regarding different business types. Types of legal business entities Sole Proprietorship This type of organization is one of the most common for small businesses. This type is controlled by one person for all of the company’s needs—management and operations. This business type is unincorporated and one of the easiest and least expensive to start. Other advantages of a sole proprietorship are that all income generated goes directly to the owner to keep or reinvest, and the business is easy to dissolve, if necessary. Some disadvantages are that the owner is responsible for any incurred debt against the business and personal assets are at risk. Also, raising funds is difficult and are often limited to personal funds or consumer loans. Tax implications. Sole proprietors pay taxes on his or her personal income taxes. The business itself is not taxed separately. The IRS calls this “pass-through” taxation because business profits...
Words: 297 - Pages: 2
...Small-Business Idea Paper The Dream of Cooking – Grandma Style Christopher Havins University of Phoenix ACC/561 Chuck Royes February 15, 2012 Small-Business Idea Paper The Dream of Cooking – Grandma Style Since graduating high school, starting a new business has been a major priority. In 2012, the federal government, in coalition with state governments, has released funds for creating small businesses. With much excitement surrounding the prospects of becoming an entrepreneur, proper research and planning is the first step in running a small business. Because of the recession, Dub & Bradstreet reported in 2011 that “across the United States, small business failure rates rose by 40% between 2007 and 2010” Therefore, understanding not only the industry, but the legal, tax, and accounting implications is vital to securing a prosperous future. “ The dream of owning a small business has centered on starting a restaurant – full of grandma’s home cooking. Restaurants, thought of as a risky business venture, have the same failure rates as other new businesses. “A longitudinal study of restaurants in Columbus, Ohio found the failure rate for restaurants was 57 to 61 percent for a three-year period (1996-1999) – still high, but much more in line with other businesses) (White, 2011). While restaurants may not be any more risky, the preparation work opening the business will be critical to future success and ownership protection. ...
Words: 1320 - Pages: 6
...Small Business Idea Paper The government recently released funds to individuals who want to create a small business. This concept of releasing funds to individuals will create more jobs and stimulate the economy. The first step for a small business owner is to determine which of the four forms of business the organization will best fit with the new owner’s ideas. In addition, the business owner will need to review all tax legalities and implications associated with the different forms of business for her organization. This paper will discuss the four forms of business and the different types of financial statements associated with the forms of business in relation to consequences of taxes, liabilities, and accounting implications. Sole Proprietorship Sole proprietorship is the most common and easiest form of business to create. Some of the benefits of a sole proprietorship are that the owner can make decisions of hiring and firing employees, decisions of which vendors to use, what materials and equipment to purchase and what direction they want the business to take. A disadvantage is that the owner is limited to funds as a sole proprietor can only access the funds that are available. In addition, the sole proprietor is responsible for all liabilities associated with the business. The financial statement associated with at sole proprietorship is the statement of cash flow. The statements of cash flows provide financial information regarding cash receipts and payments...
Words: 1267 - Pages: 6
...Small Business Idea This particular assignment instructed the student to develop his or her small business idea. The student is to imagine that the government has released funds for creating small businesses. In turn the student desires to start a small business and must decide which of the four forms of business organization would best suit the unique product or service. The information to follow will discuss the advantages and disadvantages of the four different forms of business organization, the different types of financial statements associated with each form of business organization, the following consequences associated with each form of business organization, an explanation of the unique product or service the small business provides, the choice of business organization form for the new business idea, and the rationale for choosing this form of business organization. Different Forms of Business The type of business may not be the first question a new or potential business owner contemplates. It is, however, a question that must be carefully addressed because of the tax, managerial, legal and liability impacts that the business formation has. There are a number of legal forms that a business can take. The most common are sole proprietorship, general partnership, limited liability company or LLC, and C or S corporation. Sole Proprietorship Sole proprietorships are probably the simplest and cheapest forms...
Words: 1092 - Pages: 5
...Small-Business Idea Paper There are plenty of ideas for a possible small business, but one must look past just the idea or hopes of opening a small business and think about the legal, tax, accounting, and other items that need to be addressed in establishing a small business. One of the first things to consider is, as what type of entity the company will be chartered or established, and what rules apply for the state in which the company is located. For the purposes of this paper, the potential small business owner will use the State of Colorado as the state in which the company will be headquartered and Colorado Springs as the city. The business that will be established is a high end pawnbroker in the north end of Colorado Springs. In establishing a business in Colorado Springs, Colorado, one must look at the local, state and federal ordinances and laws in establishing a business. The business owner must also decide on how the company will be registered in Colorado such as Sole proprietorship, Partnership, C corporation, S corporation, or an LLC – Limited Liability Company. This paper will show the advantages and disadvantage of each of these entities as it relates to a pawnbroker business, while also examining the different types of financial statements associated with each business entity and consequences such as tax, accounting, and legal implications. The final section of the paper will explain the reasoning behind the start up of a pawnbroker store, the classification...
Words: 1468 - Pages: 6
...Types of Flower Arrangement By: Mylene B. Bataanon BSTrm-II 1.)Horizontal Arrangements Using a relatively shallow container, anchor foam with a lot of glue or use anchor pins, and position sprays of line flowers to establish the shape of the design. Insert focal flowers in the middle so they gently droop over the lip of the container on both sides, reach towards the line material and extend on either side of the middle. Leave room for filler flowers. Fill in and around focal area with filler flowers and foliage. 2.)Vertical Arrangements Wedge or secure foam in a vase with hot glue. Cut the stems of the tallest flowers or leaves to reach three or four times the height of the vase. Place the focal flowers vertically within the diameter of the vase. Fill in the areas as needed with filler flowers. 3.)Triangular Arrangements Secure floral foam. Determine the vertical height and horizontal width with the smallest line flowers and/or leaves. Make the height higher than the width. Position the largest focal flowers in the heart of the arrangement and slightly lower to give weight and balance. Fill in with the filler flowers and foliage keeping within the triangular shape. 4.)Crescent Arrangements Secure foam in container. Determine length of crescent and insert curved line flowers or leaves to follow the crescent form. Angle the...
Words: 472 - Pages: 2
