Sole proprietorship

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. 

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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-... 

Anthony J. 2003b. Money Matters Sole Proprietorships Simple but Not Very Flexible. Available at www. bcentral.com/articles/anthony/107.asp. 

By 1923, of the 15 young women trained at The Pavement who had studied at the Pharmaceutical Society s School of Pharmacy, 14 had taken prizes and scholarships. As the Pharmaceutical Journal noted Is there another pharmacy in the country that can beat this record 42 Borrowman took over sole proprietorship in 1924. The pharmacy was badly damaged by the nearby impact and explosion of a V-2 rocket in January 1945. At this point, Borrowman converted the business to a limited company with Hilda Wells as Director. Wells had been an apprentice at The Pavement in 1918. The business ceased to be women-owned and women-run in 1958, and it finally closed in 1984. 

The TSCA 8(e) reporting obligation appUes to any person engaged in the manufacture, import, processing, or distribution in commerce of the chemical substance at issue. The term person is defined by the Agency to include natural persons, business entities (a firm, corporation, sole proprietorship, joint venture, partnership, or association), any State or poUtical subdivision... 

Section 5(a)(1) of TSCA states that no person may manufacture a new chemical substance, nor manufacture or process any chemical substance for a significant new use, unless such person submits to EPA at least 90 days before such manufacturing or processing, a PMN orSNUN notice. Person is defined by 40 CFR 720.3(x) to include any natural person, firm, company, corporation, joint-venture, partnership, sole proprietorship, association, or any other business entity, any state or political subdivision thereof, any municipality, any interstate body, and any department, agency or instrumentality of the Federal Government. ... 

An alternate path is that of an independent consultant. This is most often accomplished through a sole proprietorship or a small partnership. Projects are secured as a result of technical expertise and networks related to people one knows. Independent consultants have more freedom in the type of work they do and in how they accomplish their consulting duties. The drawback, of course, is that the revenue stream may not be stable. 

I (a) Basic requirement. You must record on the OSHA 300 Log the recordable injuries and illnesses of all employees on your payroll, whether they are labor, executive, hourly, salary, part-time, seasonal, or migrant workers. You also must record the recordable injuries and illnesses that occur to employees who are not on your payroll if you supervise these employees on a day-to-day basis. If your business is organized as a sole proprietorship or partnership, the owner or partners are not considered employees for recordkeeping purposes. 

Certify that the information is accurate. A company executive must certify that he or she has examined the 300 Log and believes that the summary is correct and complete. The company executive may be the owner (only if the company is a sole proprietorship or partnership), an officer in the corporation, the highest ranking official (or immediate supervisor) working at the establishment. 

An owner of the company (only if the company is a sole proprietorship or partnership) ... 

There may be some exceptions to the general statement that both a balance sheet and income statement are desired. For example, a modest sole proprietorship consulting business will need an income statement. However, it may not require a balance sheet because it operates on a cash basis with no significant liabilities and has little property or other assets. 

The appeal of a partnership is that it combines the financial assets, facilities, equipment, and talents of two or more individuals who are interested in engaging in the same type of business. On the negative side, particularly when compared to a sole proprietorship, individual partners are restricted in their business actions although they typically have more latitude than owners of a corporation. For example, a partner cannot sell or mortgage his or her share of the partnership s assets without permission of the other partners. Furthermore, in a fashion similar to the sole proprietorship, each partner is financially responsible for the acts of all the partners to the full extent of his or her personal assets. 

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. 

This final rule requires firms that perform renovations, as defined by this rule, to be certified by EPA. EPA is adding a definition of firm to 745.83 to make it clear that this term includes persons in business for themselves (i.e., sole proprietorships), as well as federal, state, tribal, and local governmental agencies, and nonprofit organizations. Firms covered by this final rule include firms that typically perform renovations, such as building contractors or home improvement contractors, as well... 

First and foremost, all mine operators must identify themselves to MSHA. Under rules promulgated by MSHA, all mine operators must complete a standard form with basic information, including whether the company is a corporation, partnership, sole proprietorship, or some other business entity, such as a joint ventme. From this information, MSHA determines what actions are required from a new operator in connection with the new mining operation as well as subsequent operations. 

Sole Proprietorship/Individual, enter the legal name, e.g., John A. Doe... 

T]he final rule clarifies that the 10 or fewer size exanption is applicable only if the employer had fewer than 11 employees at all times during the previous calendar year. Thus, if an employer employs 11 or more people at any given time during that year, the employer is not eligible for the small employer exemption in the following year. This total includes all workers employed by the business. All individuals who are employees under the OSH Act are counted in the total the count includes all full time, part time, temporary, and seasonal employees. For businesses that are sole proprietorships or partnerships, the owners and partners would not be considered employees and would not be counted. Similarly, for family farms, family members are not counted as employees. However, in a corporation, corporate officers who receive payment for their services are considered employees (see Section 1904.31, Covered Employees ). 

In some form or fashion, financial statements are prepared for public and private companies, for-profit and not-for-profit organizations, government agencies, sole proprietorships, partnerships, and corporations. The SEC requires public companies to submit financial reports, though most organizations prepare them in order to attract investors or borrow money. Financial statements are also necessary if the company is being acquired. 

The corporation is by far the leading legal form of plastics industry companies. This is because the corporation format sharply limits the exposure of the owners and executives to individual legal liability. This is clearly superior to partnerships or sole proprietorships, which are much simpler and less expensive to maintain but lack such protection. 

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