Small Business Idea
ACC/561
April 29, 2013
Charles Royes Jr.
Small Business Idea
In an attempt to stimulate the economy and create jobs, the government appropriated resources for individuals willing for launch a small business concept. After acquiring government subsidizing, the entrepreneur with a unique idea suited for their disposition needs to determine which business form best fits the small business. Moreover, it is vital for the owner of the small business to understand the consequences of legal, tax, and accounting issues related to the type of business form they choose. The goal of this analysis is to illuminate possible advantages and disadvantages related to four distinct forms of business organization. These include sole proprietorship, partnership, C-corporation, and S-corporation. The examination will include the diverse types of financial statements connected with each form of business organization. “A report issued by the National Federation for Independent Business showed that small- business optimism reached a high for the year in June, fueled in part by a friendlier borrowing environment and better access to credit” (Arellano, 2013). Also discussion of the chosen business will explain the unique product or service the company provides and the form of business chosen for organization.
Sole Proprietorship:
One of the easiest business forms to establish, the sole proprietorship offers a number of advantages to the entrepreneur that include the flexibility of decisions regarding hiring and firing of employees, freedom of selecting vendors, equipment, and materials to buy, but most important, the direction the business takes. A negative to this form of business centers on the legal liability of the company where the liability falls on the owner for every obligation related to the business. Creditors or plaintiffs of lawsuits against the company can come after personal assets of the sole proprietor. The critical financial analysis...