Business Forms Worksheet LAW/531 Version 7
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University of Phoenix Material
Business Forms Worksheet
There are seven forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company (including the single member LLC), S Corporation, Franchise, and Corporation. 1. Research and provide three advantages and three disadvantages for each business form. 2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary to file in order to form that business? Discuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages 1. Easier tax filing 2. Lower start-up costs 3. Fewer government rules Disadvantages 1. Unlimited liability – responsible for all debts 2. Being completely in charge of finances could lead to complacency of record keeping 3. Difficult to get outside investors for expansion Summary In order to start a sole proprietorship, the only real requirement is to provide a good or service and not be employed by any other company during the execution of the good or service. An example of a sole proprietorship that I would start would be a consulting firm because it requires next to no money to get started, and it does not need an actual storefront to operate out of. The biggest difficulty in starting this business would be future expansion. It would be very difficult to secure funding to hire more consultants, which means income will be limited by how many hours I can work.
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Business Forms Worksheet LAW/531 Version 7
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Partnership
Advantages 1. Easy formation 2. Access to diverse skill sets 3. Risk is shared by all partners Disadvantages 1. Unlimited liability 2. Responsible for the actions of all partners 3. Entering or leaving the partnership requires approval of all current...