American society has always been optimistic towards their future. The American nation is a capitalistic country. Many individuals are influenced to start up their own businesses with their own ideas. The government helps and regulates all business. There are three types of businesses sole proprietorships, partnerships and corporations. A sole proprietorship would be my best choice to start up my own business. This form of business is the easiest to start.
In the states a federal license or permit is needed to sell products or serve a service to the public. A license is required in order to begin the business operation. Income or loss the owner is accounted for on the tax return. “Flow thru taxation” is the term used to state that the owner’s incomes flows through the tax return. I would keep contact daily with my accountant. The business would not be taxed twiDifferent types of ownership of business ranging from the simple to the complex.
Here I will cover the main types, outlining the advantages and disadvantages of each leading to a decision on which type of ownership is most appropriate for my business. Types of ownership ================== There are many different types of ownership of business ranging from the simple to the complex. Here I will cover the main types, outlining the advantages and disadvantages of each leading to a decision on which type of ownership is most appropriate for my business. Sole Proprietors ================.
A sole proprietor, or sole trader, is the name given to someone who runs the business by themselves. This is usually someone who is particularly skilled in one area or had a very good and marketable idea. There are many advantages and disadvantages to setting up a sole proprietorship. Advantages ========== Sole proprietorships often require less capital to start up than the bigger businesses. This is because they are usually smaller and have less staff to start with. This cost is minimal and often only a few hundred pounds.
Sole proprietorships are easy to set up, few forms and licenses need to be obtained and the business can start almost straight away, resulting in less time being unemployed. The only official form you need to fill in is a inland revenue form for use when calculating income tax, it also entitles you to many tax advantages outlined ce as there would be in corporations. It is simply taxed once. I would not need contracts stating two people joining in and making an effort to make a business work as there would be in partner.