Business Structure Of A Business Essay

840 Words Jul 7th, 2016 4 Pages
When making this decision its primarily based on several key factors for your

organizations foundation choices. I will now explain the propositions of each legal structure

opportunity. Legal structure opportunities would include ideals, such as: sole proprietor,

partnerships, and cooperation’s in its forming stage.

Sole Proprietors legal structure for a business are accompanied with the simplest

foundation of your company. There are numerous disadvantages and advantages of the structure.

Structure advantages include being your own boss, while in contrast, with the entire business’s

success or failure in your hands. This particular business structure is a one-person team and

doesn’t have to be registered with the state. If you are starting a business, operating it as a sole

proprietor presents many benefits such as:

 Ease of start-up (from an administrative perspective)

 Lower start-up costs (incorporation involves forms, fees and sometimes legal advice)

 Quicker and simpler tax preparation

 Autonomy of business decisions and control of profits

It’s important to consider the downsides.

 Liability – If you run a business that could expose you to risk in the form of debt or

lawsuits (e.g., industries such as a child care or a food service business), then operating as

a sole proprietor could leave your personal assets vulnerable.

 Raising capital can be hard

 Lack of financial controls

 Lack of professionalism

You do not have to take any formal…

Related Documents