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    Analysis of Business Organizations

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    Examine the different type of business organizations - including advantages and disadvantages of each. Include in the analysis taxation issues related to each and the steps needed for dissolution.

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    ADVANTAGES - SOLE PROPRIETOR
    ?A sole proprietor has complete control and decision-making power over the business.
    ?Sale or transfer can take place at the discretion of the sole proprietor.
    ?No corporate tax payments.
    ?Minimal legal costs to forming a sole proprietorship.
    ?Few formal business requirements.

    DISADVANTAGES - SOLE PROPRIETOR
    ?The sole proprietor of the business can be held personally liable for the debts and obligations of the business. Additionally, this risk extends to any liabilities incurred as a result of acts committed by employees of the company.
    ?All responsibilities and business decisions fall on the shoulders of the sole proprietor.
    ?Investors won't usually invest in sole proprietorships.

    A sole proprietorship would be ideal if you wanted to go into business alone.

    ADVANTAGES - PARTNERSHIP
    ? You have a shared financial commitment.
    ? You can pool resources, expertise, and strengths.
    ? There are limited startup costs.
    ? There are few formalities ...

    Solution Summary

    This answer examines the different type of business organizations - including advantages and disadvantages of each. Included in the analysis are taxation issues related to each and the steps needed for dissolution. The business organizations examined include:

    Sole Proprietor
    Partnership
    LLP and LLC
    Corporation

    $2.19

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