Acc 562/Week 2

When the government creates programs to help small businesses get started, they help small business owners procure the funds to get their business up and rolling.   When starting these businesses, there are many things to consider.   These things are 1) what type of business will the owner form, 2) what are the legal, tax, and accounting implications to this type of business, 3) what are the advantages or disadvantages in the type of business the owner selects, 4) why a business owner wants to pursue this type of small business, and 5) what unique service the small business provides to the market.
There are four primary business ownership types that I could choose from in starting my small business.   They are a sole proprietorship, a corporation, a partnership, and a limited liability company (LLC).   Each type of business ownership has advantages and disadvantages.   Depending upon these pros and cons, the size of the company, and how the company will make its money; will help the business owner decide which type of ownership is best for them.   The sole proprietorship is when a single person is engaged in the business.   The advantage is that the owner makes all the decisions and runs the business as he or she chooses.   The disadvantage is that the owner is personally liable for anything that happens because of the business.   For example, if the owner were to hurt someone while performing a task for their business, they could be personally sued.   This means their personal property could be used to pay the person who got hurt ("mslawyer.com", n.d.).   There is also the corporation.   According to businessdictionary.com, a corporation is a legal existence or firm that can buy, sell, own, enter a contract, and sue other persons or firms ("BusinessDictionary.com", n.d.).   The advantage of a corporation is that the corporation is the "owner" of the company and is responsible for debts of the business and the shareholders, directors, and officers cannot be pursued in a...