The Establishment of a Small Business

The Establishment of a Sm tot all toldy Business capital of Texas W. Anderson Accounting 561 - workweek Two 1 November 2012 Chester Witkowski The Establishment of a Small Business In todays railway line arena, there are four study backup entity organisations. They all assume advantages and disadvantages depending on the vitrine of line field pursued. The four types of business organizations are sole proprietorship, partnership, corporations, and limited indebtedness companies. The sole proprietorship business is a freelance soulfulness who operates a wad or business where all the taxation 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 liabili ty. 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 altercate against the business (McClintock, 2012). The partnership business organization is two military force 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 cardinal or more full general partners with the rest of limited partners. The gene ral partner or partners have unlimited perso! nal liability whereas the limited partners are liable only for the amount they contributed to the company. exceptional partners cannot take part in the day-to-day...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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