Legal Forms of Business
Olga Belteton
LAW/531
February 6, 2012
Julie A. Benes, J.D., Esq
Legal Forms of Business
Creating a business takes several factors one important factor is deciding what kind of business it is going to be. There are several forms to choose from and picking the one that will suit the business takes understanding what the legal forms of business mean. The following will explain and give scenarios for sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate forms of business.
Sole Proprietorship is considered the easiest form the owner is the business. Several advantages are low cost, management decisions including hiring and firing are all the sole right of the owner, does not share the business profits and can be sold or transferred easily and with only the owners approval. The disadvantages include the money to open the business comes from personal accounts and any loans approved. The owner is responsible for all legal and financial issues that may come up during the course of running the business including anything their employees might do. (Cheeseman, 2010) Scenario of sole proprietorship could be “Extreme Couponing Consulting” This is very popular these days and it works for a variety of reasons. The low overhead because all you need is a phone and a computer. You can advertise in your local paper and ask your local library to let you use one of their meeting rooms for a free seminar to get people to meet you and learn what you can do for them. You can charge people a fee if they want you to create a binder for them or to teach them how to create the binder. There could be a fee to take them shopping and show them how to use their coupons and depending on the stores, how many or distance will depend on the fee you charge. Since you would be your only employee unless you decide to branch out this would be a good form of business to start....