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Lit1 Task 1 Part a

In: Business and Management

Submitted By violetradar
Words 1136
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Running Head: LIT1: Legal Issues for Bus.Org Task 1

PART A
Sole Proprietorship: Is one of the most popular business types in the U.S and also one of the simplest. There is no legal distinction between the proprietor and the business which means it is autonomous. Autonomy can be very beneficial in that it allows for creative expression, freedom and control but also allows for limitless liability for the owner.
Liability: Because the business and the owner are one in the same the liability falls completely on the owner. All forms of a business owner’s assets are available to cover business debts. * Income Taxes: All net income from a Sole Proprietor’s company is taxed as personal income. * Longevity/Continuity: Since this business type is autonomous it can only have one owner. Also the business cannot be sold to someone else. * Control: This business type is controlled by the sole. * Profit Retention: The profit earned from a sole proprietorship is all personal. * Location: The simplicity of this business type allows one to be created wherever the business owner is. * Convenience/Burden: The convenience of a Sole Proprietorship is that it can be created just by starting to do business. The burdens can be the lack of other people to help in the ownership of the business.
General Partnership: A General Partnership is similar to a Sole Proprietorship in that it still is not a separate legal entity. A General Partnership is formed when two or more people agree to share profits and liability in business together.
Liability: Each partner is jointly liable for all the debts and obligations of the business.
Income Taxes: The net income is reported on the individual partner’s personal income tax returns. * Longevity/Continuity: The longevity and continuity of a partnership can be outlined in the Articles of Partnership. *…...

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