Determining Your Perfect Position

Determining Your Perfect Position
Field Williams Sr.
LDR/531 Organizational Leadership
March 9, 2010
Professor Mary-Lynn Ament
Basic Business and Personality Formation
Regulatory Implications for Forming an Entity
To form a business, one must keep in mind the legal regulatory of business entities. Business organizations fall under many different types. These types are Sole Proprietorship, Partnership, and Corporation (University of Phoenix, 2002). It is essential to analyze how each function operates and consider their upsides and downsides.
Analyzing Several Entities
Sole Proprietorship Advantages
A sole proprietorship is the simplest and cheapest way to start. An organization owned by only one person is a sole proprietorship.The sole proprietor is in control of his or her business’s goals and daily operations (University of Phoenix, 2002).
Sole Proprietorship Disadvantages
The owner is personally responsible for the debts of the business which makes it a downfall for the sole proprietor. A sole proprietorship is not taxed as an organization. All the proprietorship’s income subject to taxation is attributed to the proprietor (University of Phoenix, 2002).
Partnership Advantages
A Partnership is formed with two or more individuals. The formation costs are not significant. Partnerships are entities not entitled to pay taxes. Unless there is a contrary agreement by parties, each partner has an equal voice in management. A partnership may function in more than one state without ever obtaining a legitimate license to conduct business. Partnerships generally are entitledto less regulation and less governmental supervision than are corporations (University of Phoenix, 2002).
Corporation Disadvantages
Business Advice and Legal Entity Choice
When choosing professional business advice, individuals must take into consideration the professional’s qualifications and their different talents and skills. Besides, there are people...