My First Great Business Structure Essay

1353 Words 6 Pages
When the decision is made to create your own company, it is very important that you consider the type of business structure that will work best for you and the type of operation you will be running. There are a few different types of business structures look at which include a sole proprietorship, a partnership, a Limited Liability Company(LLC), and also a Corporation. Whichever route is decided on, consideration should be taken in terms of steps involved in the formation of the structure, taxation, advantages, disadvantages as well as personal liability for owners. When I decide to open my first great business I believe I would choose the Sole Proprietorship business structure, as I will probably be opening a small general construction company.
A sole proprietorship is perhaps the most common and simplest business structures chosen to start a business (Rogers, 2012). Not only is it an unincorporated business, but it is also managed and run by a single individual, making their no difference between the business and themselves. With a sole proprietorship the owner is entitled to all the profits made by the company, while also being responsible for all the debits, liabilities, and any losses incurred by the business. The formation of a sole proprietorship an individual does not necessarily need to take any formal action, the status automatically comes from the business activities being conducted (Rogers, 2012). With this being said, the individual owner will still need to…

Related Documents