Small Business Idea

Small Business Idea Derrick Rolfingsmeier University of Phoenix Accounting ACC/561 George Bray June 01, 2012 Small Business Idea The government has released notes for creating small craftes. Ones interest is to establish a small trading and must determine which of the quartet forms of line of merchandise organization will best suit the business chosen. Legal, tax, accounting, and former(a) implications will also be discussed when selecting from the four business types. The four forms of business include fillet of sole possessorship, compact, C Corporation, and S Corporation. news will explain advantages and disadvantages of the four forms of business, financial statement associated with severally form of business organization, and the consequences of tax implications, legal implications, and accounting implications such(prenominal) as SOX and FASB. An explanation of the business that was chosen will be explored and the rationale for choosing that form of business organization. Sole proprietorship advantages and disadvantages Sole proprietorship is the most common and simplest form of business. An individual owns and manages the business and is answerable for business transactions and responsible for debts and liabilities incurred (AllBusiness.com, 2007, p. 1).

Advantages of sole proprietorship is the proprietor is in full control of the business, no unified taxes, legal cost is at a minimal, formal business requirements are at a minimal. Disadvantages of sole proprietorship is the proprietor is responsible for personally liable of debt and obligations, can be responsible for liabilities committed by employees, and sit downors usually will not invest in a sole proprietorship (AllBusiness.com, 2007, p. 1). Partnership advantages and disadvantages Partnership is an agreement between two or more battalion to finance and operate a business. The profits and losses lead through to the partners income tax returns (meaning the percentage of possession is percentage of profits or losses... If you want to get a full essay, order it on our website: Orderessay

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