The Establishment of a Small Business

The Establishment of a Sm tot in ally Business capital of Texas W. Anderson Accounting 561 - workweek Two 1 November 2012 Chester Witkowski The Establishment of a Small Business In todays railroad line line arena, there are four study championship organization entity organisations. They all assume advantages and disadvantages depending on the fibre of business human beings pursued. The four types of business organizations are sole proprietorship, partnership, corporations, and limited financial obligation companies. The sole proprietorship business is a freelance i-on-one who operates a wad or business where all the revenue enhancement consequences fall to the proprietor, including all liabilities, debts, and losses (Accounting, 2001). The advantage of being a sole proprietor is simplicity, it requires no additional records retentiveness or filing. The IRS will require accounting records for tax purposes. The major(ip) disadvantage of this type of business entity is personal financial obligation. The sole proprietor, has unmeasured liability for all lawsuits directed against the business.

The owner, in this case arsehole lose everything own if there is a judgment or legal gainsay against the business (McClintock, 2012). The partnership business organization is two staff office who carry on a trade or business together. The partnership can be oecumenic or limited. In the universal partnership, both partners are liable(p) for all judgments or claims against the business. In a limited partnership, the penning will be one or more global partners with the rest of limited partners. The general partner or! partners have unlimited personal liability whereas the limited partners are liable only for the amount they contributed to the company. limited partners cannot take part in the day-to-day...If you want to get a full essay, order it on our website: BestEssayCheap.com

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