Llc Future Plan

As a potential partner in a for-profit business venture to service the human resource requirements of fast food franchises, I am interested in researching the optimal business form for the start-up of this venture with a clear future plan to grow the business to a national level. There are pros and cons that must be examined for each business type and they are as follows:

Sole Proprietorship
The positive qualities include simplicity of set up, no double taxation, all business income is reported on the personal income tax return of the owner, and its taxes are paid on the business income rather than the business as an entity, while the negatives involve no personal limited liability protections, Medicare and Social Security taxes are assessed …show more content…
However, regardless of certain drawbacks, a Limited Liability Corporation is the ideal choice for this venture, since limits personal liability and taxation and allows room for the growth of the business (Business Form…, n.d.).

Next, I must investigate which topics must be considered as part of the feasibility study. First, an analysis of the business idea itself to determine profitability is extremely important, because if there is no demand or market for a product/service, it is not worth pursuing (Feasibility of the Business Idea, n.d.). Second, a competitive analysis will reveal who the direct competition will be, if there are serious obstacles that must be faced to enter the market, and how the product is different from the competition (Feasibility of…, n.d.). And third, a financial analysis to determine the estimated start-up and working capital costs, sales forecast, and estimated profitability of this business venture will prove extremely valuable (Feasibility of…,