Employment Law Compliance Plan
University of Phoenix Material
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? Discuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages
1. A sole proprietor has complete control and decision-making power over the business.
2. Sale or transfer can take place at the discretion of the sole proprietor.
3. No corporate tax payments
Disadvantages
1. Held personally liable for the debts and obligations of the business.
2. Risk extends to any liabilities incurred as a result of acts committed by employees of the company.
3. Decisions making fall on the shoulders of the sole proprietor.
Summary
A sole proprietorship has to submit a file all applicable forms under the fictitious name or under doing business as (DBA). An example business can be an Ice-cream stand is one of the easiest business form that an individual may run a business. When operating a business under sole proprietorship, do not mean it is a legal entity it stipulates the owner of the business and who is responsible for the debt that occur for the business. The sole proprietorship can be operated under the name of the owner or a fictitious name , which will be the trade name, but do not constitute a legal entity that have nothing to do concerning the sole proprietor owner.
Partnership
Advantages
1. Business is easy to establish and start-up costs are lower.
2. You’ll have greater borrowing capacity
3. There is limited external regulation
Disadvantages
1. The
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? Discuss at least one of the advantages and one of the disadvantages of that form.
Sole Proprietorship
Advantages
1. A sole proprietor has complete control and decision-making power over the business.
2. Sale or transfer can take place at the discretion of the sole proprietor.
3. No corporate tax payments
Disadvantages
1. Held personally liable for the debts and obligations of the business.
2. Risk extends to any liabilities incurred as a result of acts committed by employees of the company.
3. Decisions making fall on the shoulders of the sole proprietor.
Summary
A sole proprietorship has to submit a file all applicable forms under the fictitious name or under doing business as (DBA). An example business can be an Ice-cream stand is one of the easiest business form that an individual may run a business. When operating a business under sole proprietorship, do not mean it is a legal entity it stipulates the owner of the business and who is responsible for the debt that occur for the business. The sole proprietorship can be operated under the name of the owner or a fictitious name , which will be the trade name, but do not constitute a legal entity that have nothing to do concerning the sole proprietor owner.
Partnership
Advantages
1. Business is easy to establish and start-up costs are lower.
2. You’ll have greater borrowing capacity
3. There is limited external regulation
Disadvantages
1. The