The Benefits Of An Entrepreneurship

As an entrepreneur, it is imperative to choose the right form of ownership before starting a business. Every business has different needs so it makes sense that each business differs in which form of ownership it chooses. I think this is important to learn and assess because of tax and liability issues. An entrepreneur starting their first business needs to take the form of ownership into high consideration because of the liabilities and expenses that are incurred depending in the form of ownership that they end up choosing. For example, if you start an online business where as the sole owner you contribute all the necessary needs of the business and part of your investment is to file as a corporation, then you might be incurring in more tax, …show more content…
I do not like the idea of a general or limited partnership as I think the disadvantages outweigh the advantages. Unfortunately, being legally bound to contracts even without my consent is reason enough to never consider a partnership. Then, a corporation is not a feasible option because of the high cost in the incorporation process along with double taxation and the legal and financial requirements that need to be reported on quarterly and annually basis. Unless you have the capital in profits and the manpower to maintain a corporation, it is just not a good option. My last two options would be an S Corporation or an LLC. An S Corporation is a good option because it is taxed at an individual tax rate, but ultimately I would go with an LLC. An LLC has many of the advantages of a corporation but with the flexibility to allow entrepreneurial growth. An LLC does not pay income taxes but rather the members are responsible for paying income taxes on their shares and the liabilities are distributed amongst the members as …show more content…
Franchises such as McDonalds are recognized globally which makes it easier for a franchise to prosper in a new environment. This is something that is both a pro and a con because an establishment that is so largely recognized, will also most likely be heavily saturated in most places. This is one of the main reasons why research is so important, whether you decide to invest in a franchise or not, it is important to do as much research as possible and decide on the best location. Location is not only important for a business with no brand recognition but it also becomes a liability in a business that is so heavily recognized because the customer is not choosing its “favorite” franchise location but the one that is most convenient to