Submitted by: Submitted by mrdeason
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Pages: 6
Category: Business and Industry
Date Submitted: 05/09/2016 04:15 PM
Small Business Idea
Daryl D. Eason
ACC/561
April 24, 2012
Andrea W. Dixon
The government of the United States has just released funds for individuals that want to create a small business. Daryl was reading the article the Arkansas Democrat Gazette, and Daryl said to himself that this is the opportunity that he has been looking for. However, he realizes that there advantages and disadvantages to developing his own business. Daryl would have to decide which form of business organization would best suit him. There are four different forms of business organization, and they are Sole proprietorship, Partnership, C Corporation, and S Corporation. Also with deciding which business form would best suit his business, Daryl has to figure out what type of financial statements that would be needed to ensure he had a structured business. Last, Daryl still has to explain what type of service that he would provide to his community. As the governing official will read he, or she will see what Daryl small business would bring to his community.
The first form of a business organization is sole proprietorship. Sole proprietor is an unincorporated business with one owner who pays personal income tax on profits from the business, (Investopedia, 2011). An example of sole proprietorship is an individual decides to open a small restaurant. This would be the preferred business form because you are the owner and the operator of you own business.
The second form of a business organization is partnership. A partnership is a business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business, (Investopedia, 2011). An example of partnership is two or more family members open a restaurant. This would be the preferred business form because several individuals with the same interest can invest in the restaurant equally.
The third form of a business organization is C...