LIT1 TASK 1
There are many different types of business ownership to consider when looking to start a new business venture. Although there are many subtypes, there are six main types of business ownership: Sole Proprietorship, General Partnership, Limited Partnership, C Corporation, S Corporation, and Limited Liability Company (LLC).
A Sole Proprietorship is a form of business ownership where a single individual had total authority over all business operations and management. It is the simplest form of business ownership and the easiest to establish. Any profits that are earned by the business belong solely to the business owner, who is also responsible for any losses. This form of business ownership is good for individuals who are self-starters and motivated.
Perhaps the best advantage of a Sole Proprietorship is having complete control over the direction and vision for the business. The owner has maximum authority and is the sole decision maker for the business. There are no other thoughts, feelings, or opinion that need to be considered by the owner before making a decision about the business management and/or operations.
Another great advantage of a Sole Proprietorship is that it is the least expensive to start. This is due to the fact that there are few legal restrictions placed on this type of business ownership, except for the general civil and criminal laws that apply to all forms of business. Because there are few legal restrictions and requirements this makes start up and maintenance a very easy process.
In a Sole Proprietorship the owner keeps all profits that are earned by the business. These profits are the owners to keep and/or distribute however they see fit.
The business itself is not required to pay income taxes. The business owner is required to report any gains or losses on their individual income tax returns.
Undoubtedly the worst feature of a Sole Proprietorship is...