Week 2 Individual Assignment

Radio Frequency Signature Technology.

The government is currently promoting incentives for small businesses and I am interested in taking advantage of this opportunity. To take advantage of this incentive, I must decide which of the four forms of business organization such as Sole Proprietorship, Partnership, C Corporation, and S Corporation would benefit the new business venture and advantages and disadvantages of the four types. To take advantage of the government incentives, I must consider legal and tax implications as well as accounting requirements associated with each business type when selecting a business type. In addition, this paper proposes implementing a Radio Frequency Signature Technology while weighing the advantages and disadvantages of the four business types, formulating rationale for selecting type of business to realize marketable success with new venture.

Sole Proprietorship

Sole Proprietorship is one of the most common and simplest legal structures to implement for a small business. This structure is individually own and managed by one person. This person is legally responsible for business transactions, debts and liabilities incurred in this structure. Some advantages of this structure are proprietors are: 1) Proprietor is in full control of all business decisions, 2) Proprietor retains all business profits, 3) Proprietor structure has no corporate taxes, 4) Can easily be transferred or sold with unnecessary approval from a partners or shareholders. There are disadvantages to this business form for instance with sole proprietors are legally responsible for all debt and personal assets are at risk. In addition, sole proprietor is legally responsible for business contracts and torts owner or employees commit while under this structure.

Partnership

When forming a business structure and funds are limited, it is advantageous to implement the sole proprietorship however one would use the partnership structure when economic resources...