Business ownership sole proprietorship

Sole proprietorship This is the simplest ownership form because the business is owned by one individual. The sole proprietor owns all the assets, receives all profits, and is responsible for all aspects of the busi-... 

While the introduction presented here will certainly not prepare you for either of the stated applications, it could form the foundation on which you can gradually, by study and observation, build a superstructure of understanding how businesses are organized from a legal perspective. Recognize that variations exist on the three basic forms of form of business ownership. The following descriptions of the sole proprietorship, partnership, and corporation are based, in part, on Clough et al (2005), Halpin (2006), and Walesh (2000). 

With the sole proprietorship or, as it is sometimes called, the individual proprietorship or sole ownership, an individual owns and operates the business. One advantage of the sole proprietorship is that it is the simplest and least expensive to establish and operate. An example of simplicity is that U.S. income tax reporting consists of completing one tax schedule (Schedule C, Profit or Loss from Business) for inclusion with the proprietor s personal tax return. Furthermore, there is maximum freedom of action in that the owner is the boss and can act unilaterally in all decisions. Being a sole proprietor is enabled by the internet and its communication and research resources. 

From a legal perspective, businesses such as consulting firms, manufacturing companies, and constructors use one of three basic forms of business ownership the sole proprietorship, the partnership, and the corporation. As you move through your career in the private sector, when you are an employee, you may work for all three types of organizations. If you decide to start you own business, various business ownership avenues and scenarios are available. For example, you may begin as a sole proprietorship, then join with others in a partnership, and finally convert to a corporation. 

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