Organization Of a Small Business

Running Head: memorial tablet of a Sm exclusively Business

Organization of a Small Business
Accounting 561
September 5, 2011

Organization of a Small Business
Introduction
When opening a note there ar many factors that need to be considered. After evaluating these many factors hence the entrepreneur can decide to move forward or not. These factors are extremely important to decide before legal exertion with any concern plan. These factors can make or recess an entrepreneurs new company.

The Business Organization
Before proceeding with any vitrineface of business, the entrepreneur needs to select the slip of organization the business will be. The choice needs to be made between making the company a mend proprietary, a partnership, a C Corporation, or an S Corporation. thither are many implications the entrepreneur needs to consider when selecting the type of company they will be opening. Making a price selection could father serious consequences on the new business.
The rootage type of business organization the entrepreneur has the opportunity to utilisation is a sole proprietorship. A sole proprietorship is the easiest business to start. A major disadvantage to a sole proprietorship is the legal implications. In a sole proprietorship there is no separation between the business and the owner.



When a ignore is signed the owner signs all documents in their own name. This is do because there is no difference legally between the business and the owner. There is no liability protection in this type of business. All debts are held accountable to the owner (The Basics of touch on Proprietorships, 2005).

Under a sole proprietorship, the owner does not have to file any special tax returns. Business loot and losses are filed under the owners 1040 form in memorial C and E. Sole proprietors are responsible for paying all federal and state taxes for the business. The owner is also responsible for coating self-employment tax, medicare, and social security. Owners of a sole...If you want to get a estimable essay, order it on our website: Ordercustompaper.com



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