Business Ownership Assignment

Dominic Angelicola Mod 8

-Business Organizations-

Sole Proprietorship

A sole proprietorship is when there is one individual who ones a business. There are fewer forms to file than with other business organizations. The business is made so legal documents are not required to determine how profit sharing from business operations will be handled. An example would be "sole providerz" in Scranton Pa.

Partnership

A partnership is a structure that is appropriate to use if you are not going to be the sole owner of your new business. Partnerships must file information returns with the IRS, but they do not file separate tax returns. An example would be Ben and Jerrys ice cream.

Corporation

The steps for establishing a corporation are very similar to the steps for establishing an LLC. However, it is considered more complicated to run a corporation because of tax, accounting, record keeping and paperwork requirements. Unless you want to have shareholders or your potential clients will only do business with a corporation. An example of this would be 7-Eleven

Franchise

The franchise is an alternative to building chain stores to distribute goods that avoids the investments and liability of a chain. When you buy a franchise you buy a bussiness that already has what to do outlined. The franchisors success depends on the success of the franchisees that the owner buys into such as Subway, Burgerking, and wendys.

Non-Profit orginization

A nonprofit organization is an organizations that uses its surplus revenue to further achieve its purpose or mission, rather than distributing its surplus income to the organization's shareholders or that is equal as profit or dividends. This is known as the distribution constraint. The decision to make this a non profit legal structure is because it will often have taxation implications mainly where the nonprofit seeks income tax exemption charitable status and things like that. An example of this would be UNICEF.