Small Business Idea

Small Business Idea

These years the economy circumstances remain slow. Around the world opening of a new business stay low as well. Therefore, some governments decide to announce that they have released funds for creating small businesses. In Iran this funds is up to two billion Dollars in order to grand a plan for assisting people who interested in opening their own businesses. This new plan is available for every kind of new businesses, and the government is hopeful that these funds can boost the fragile economy, and also build trust between people and their government who try to fix its country’s economic situation. . For starting a new and small business, a person needs to decide which of the four forms of business organization would best suit his/ her product or service; partnership, sole-proprietorship, s-corporation, or c-corporation. S/he must also consider the financial statements, which would be involved with all four forms of organization that s/he would be offered. In addition, a person also needs to explain consequences in the accounting implications, lieu of taxes, and legalities. In this paper, a summary of a new business scheme will be explained.

Types of Business Organizations

For establishing a new business, an owner of a business needs to decide which form of main forms of business structure suits his/her business. The owner can select from partnership, sole proprietorship, s-corporation, and c-corporation forms. The advantages and disadvantages of the mentioned forms will discuss as follow:

Partnership Pros

The most important advantage to a partnership form of business is that there is no need for a business to pay taxes on the money that a business earns throughout the year. Moreover, partnership has also need minimal paperwork to get stat the business. The partnership agreement is the only paperwork that needs to be completed and filed in the local court system.

Sole Proprietorship Pros

There are many new...