Legal Forms of Business

Legal Forms of Business Paper
Scott Killian
University of Phoenix

Week ones’ reading assignment dealt with the different types of businesses. Each type of business has advantages and disadvantages, depending on the circumstances. This paper will examine the different types of businesses and present scenarios that will help justify why each particular type of business is the preferred type.
Owners who like complete control of all business decisions would be best suited   to the sole proprietorship business model. Sole proprietorships require very little money in legal costs to set up, which allows an owner to invest more capital into the business. There are also no business taxes in a sole proprietorship because the profits are taxed through the owners’ personal income taxes. An owner of a local bakery would be an example of a business that would be best suited to a sole proprietorship.
Partnerships are a business model where two or more individuals join to form a business. Partnerships are fairly easy to set up and each owner in the partnership shares in the operation and decision making. A group of attorneys would be an ideal partnership business. Each attorney can bring their own particular expertise to the business that would allow more diversity. Partnerships also can   raise more funds as each partner can invest in the business. Attracting employees is also an advantage to partnerships because the incentive to be offered a partnership in the business is a big draw.
Limited liability partnerships are formed when two or more individuals form a partnership to operate a business but are limited in their liability not only to the company but also to each individual partner in the company. This means that if one partner is negligent, the other...