Small Business Idea

Small Business Idea

Diane M. Jones-Sutton

ACC/561

May 28, 2012

Zandra Zamora

Small Business Idea

With the help of government released funds for creating small business the small business idea that wants to be started is possible. In the following a look at the decision on which type of the four forms of business organizations would best suit the unique product or service considered for this business, the legal, tax, accounting, and other implications when selecting the four business types will be touched. The advantages and disadvantages of the four different forms of business organization and the different types of financial statements associated with each form of business. The consequences associated with each form of business organizations in the implication of tax, legal, and accounting including SOX and FASB will be discussed. An explanation of the unique product or service that the small business provides, the choice of the form the new business will take, and the rationale of choosing this form of business.

Form of Business

When creating a small business the individual needs to decide what type of business it is going to be and what form of business organization would be best suited for the product or service that is going to be provided by this business. The four forms of business are Sole Proprietor, Partnership, C Corporation, and S Corporation. Each form is a good choice for businesses, but making sure that the right one for the new business is important for success. The most common form of business is the sole proprietor. As a sole proprietor the proceeds from the business will belong to the sole proprietor and do not need to be split among partners.

For the venture that is being created the sole proprietorship will be the chosen form of business. The boutique of handmade gifts that will be the business being started will feature handmade gifts made by the sole proprietor. These items are unique and many are one of a kind item along with...