Multimedia Activity Assignment: Business Organization

BUSINESS ORGANIZATION
Student’s Name:
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Preferred Business Structure
If I were to start my own business, it would be a sole proprietorship. This business structure is easier to form compared to any other business structure. For example, the costs required to develop the startup from scratch are minimal compared to other business structures such as limited liability companies or even an S-Corp. On the other hand, a sole proprietorship structure has an easy tax preparation schedule. In fact, the business is not taxed separately; the tax imposed in this business structure is the sum total of personal income returns tax, and has the lowest tax rates of all business structures. Another major benefit of the sole proprietorship model is the absolute control it offers an individual. Since you are the rightful owner of the business entity, you are entitled to make any decision you deem fit for your business.
Sole Proprietorship
A sole proprietorship is actually the easiest and quickest business structure to adopt. There are no complex legal requirements since it is just an individual who forms the business. However, as a sole proprietor, one may need to still register the business and acquire a formal operation license from regulatory authorities. Registration of the business structure requires one to either use a personal name or a trade name (or Doing Business As name). The trade name is required when a personal name is not desired in a business. For example, instead of George Dunham - IT professional, one may prefer to use a DBA (Doing Business As) name like Dunham Technologies. The DBA name allows your business to acquire a formal tag that can be used when doing business with state or federal governments, suppliers or any business entity (Balouziyeh, 2013). In a sole proprietorship business structure, the individual owner of the business bears all risks, debts, and losses that the business may incur along its lines of operations. However, on tax schedules, the sole proprietorship business and the owner are treated as one entity. The owner therefore pays tax at a personal income tax level. Sole proprietorships have several advantages; they are relatively easy and cheaper to start, the owner has absolute control of business decisions, and tax schedules are easy to prepare. On the contrary, sole proprietorships offer unlimited liability because the owner of the business assumes all the risks, debts, and even losses. Secondly, the money required to start such businesses may be hard to come by. No single lending institution will readily lend money to individual owners of businesses without certifying their credibility (Harden & AICPA, 2011). As such, it may be hard to find a reliable source of money to start a business. Another major concern with sole proprietorships is the heavy burden it can impose on an individual. It is only the owner who is responsible for his or her own successes or failures. Therefore, it requires a great efforts, knowledge, and time to make things work.
Partnership
Partnerships are business structures that comprise two or more rightful owners. In forming a partnership, an agreement is laid down to enhance operations in the business. Afterwards, the part...