Advantages Of A New Business Essay
1. As the corporation are well known’s, so they attracts the investment for their well established names.
2. Owner can become employee of the company and can enjoy the benefits such as reduction in health fees or etc.
3. It can have various classes of shares unlike in S corporation.
1. Fees of registration, agent fees and other legal fees which are huge in amounts have to be paid.
2. Different formalities and laws have to be followed unlike in other forms of business
3. It cannot be dissolved easily ,proper formalities and rules have to be followed in order to dissolve the firms
When a new business is started as retail store by me, I had started with my savings as sole proprietorship as I want to keep all the profit myself because all efforts and money has been put by me. It will also help me in implementing new ideas as no other person will participate in my business. But at the same time I will also be careful to run the business to make sure that the loss is not more than the amount invested by me as the liability of a proprietor is unlimited. I will have to make up for all losses from my personal assets.
Now I want to expand my business of retail stores to other part of the city but I do not have enough money to do that I do not have the person which may be trusted. I found a friend, which may be trusted and is also interested in doing the business with me. Therefore I made him my partner and change my business in the form of…