Business Structure Of A Business Essay example

1321 Words Sep 27th, 2016 6 Pages
Small Business Structure
BUS311: Business Law I
Instructor: Brian Lahargoue
Brandy Noell
September 26, 2016

Starting up a business is not only a big step but also has many things to consider before you start. One of the biggest decisions is going to be what type of business but what business structure you are going to use. You have to weigh your options then decide if Sole Proprietorship, partnership, LLC, or corporation is the best for you. There are advantages and disadvantages to all of these. The first step for a successful business is knowing what each entity means and what goes into it. Sole Proprietorship is the most basic and simplest form of business organization in which a single owner owns and operates the business. This structure doesn’t require any type of formal action to form as long as you’re the only owner this automatically comes for the business activity. Like any other business you still have to get the necessary licenses and permits which vary by industry, state, and locality. If you choose not to do business by using your name, you have to file for a fictitious name. A fictitious name is an assumed name, trade name, or DBA (doing business as). Do to the fact that you and your business are one in the same the business itself is not taxed. The money you make with the business is your income that you report on your taxes, which includes self-employment and estimated taxes. Sole Proprietorship being the simplest form of business it has…

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