Advantages Of A Sole Proprietorship Essay

1078 Words Jun 23rd, 2015 null Page
The Cardigan’s have showed interest in expanding their already profitable business by adding an additional store front. Cora and Caley would like to operate a home décor store with the Cardigan family logo displayed on all goods sold. They think that consumers would support a Cardigan lifestyle within their homes. This memorandum will discuss the type of business Cora and Caley should expand on and the multiple names choices for the business.
The first business type is a sole proprietorship. This is the simplest form of business and that works to some businesses advantages (Miller, 2013, p. 445). With this simplest form of business there are advantages and disadvantages. Some advantages of a sole proprietorship are the owner is the business and therefore receives all the profits, the ease of starting the business, only pays personal income taxes, and the owner makes all the decisions (Miller, 2013, p. 445). Just reviewing the advantages of a sole proprietorship, it appears to be the best choice for anyone whom wants to establish a business. No hassles or headaches regarding the business formation. Now the disadvantages, the owner has the burden of all losses or liabilities, the death of the owner automatically dissolves the business, and creditors can take personal funds for business debts owed (Miller, 2013, p. 445-445). This is where the disadvantages can play a role in how a business chooses to form. Notice that within the name of sole proprietorship is the…

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