Law 531 Week 2 Worksheet
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Business Forms Worksheet
There are seven forms of business: sole proprietorship, partnership, limited liability partnership, limited liability Company (including the single member LLC), S Corporation, Franchise, and Corporation.
1. Research and provide three advantages and three disadvantages for each business form.
2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary to file in order to form that business? Ddiscuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages
1. Least expensive form of ownership to organize.
2. Sole proprietors receive all income generated.
3. The business is easy to dissolve.
Disadvantages
1. Unlimited liability. Sole proprietors are legally responsible for all debt against the business.
2. Difficult to recruit individuals interested in owning part of business.
3. Sole proprietors business and personal assets at risk.
Summary
As a Sole Proprietor I would start a Home Health Care company. When starting a Sole Proprietorship there are no necessary legal documents needed to be filed to start this form of business. Eventually the owner would need a DBA (Doing Business As) as well as an EIN (Employer Identification Number). A Sole Proprietorship is the least expensive business form to organize because there are no legal cost just simple startup costs like supplies need for the jobs. The main disadvantage would be liability on the owner. Sole Proprietors will assume all debt of their business.
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Business Forms Worksheet
There are seven forms of business: sole proprietorship, partnership, limited liability partnership, limited liability Company (including the single member LLC), S Corporation, Franchise, and Corporation.
1. Research and provide three advantages and three disadvantages for each business form.
2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary to file in order to form that business? Ddiscuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages
1. Least expensive form of ownership to organize.
2. Sole proprietors receive all income generated.
3. The business is easy to dissolve.
Disadvantages
1. Unlimited liability. Sole proprietors are legally responsible for all debt against the business.
2. Difficult to recruit individuals interested in owning part of business.
3. Sole proprietors business and personal assets at risk.
Summary
As a Sole Proprietor I would start a Home Health Care company. When starting a Sole Proprietorship there are no necessary legal documents needed to be filed to start this form of business. Eventually the owner would need a DBA (Doing Business As) as well as an EIN (Employer Identification Number). A Sole Proprietorship is the least expensive business form to organize because there are no legal cost just simple startup costs like supplies need for the jobs. The main disadvantage would be liability on the owner. Sole Proprietors will assume all debt of their business.
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