In this section I will be assessing different business types and the advantages and disadvantages within the music industry. the business types I will be researching are sole proprietorship, partnership, corporations and limited liability company. Sole Proprietorship Most small businesses tend to start out as sole proprietorships. These companies are owned by one person. This individual normally has the day-to-day responsibility for running the business. Sole proprietors own all the assets of the business and all the profits generated by it. They are also completely responsibility for any of its liabilities and debts. In the eyes of the law, you and the business are one entity. The advantages of a sole …show more content…
If looking for someone to invest money or be part of your business you may struggle to find people with vast knowledge of the industry you are in as it may feel like to much of a risk for them. Employee benefits such as owner’s medical insurance premiums are not directly deductible from business in (only partially as an adjustment to income). If you earn £20.000 in one year 10,000 of this is taxable (depending on current pre tax earnings) Conclusion In conclusion if you are confident in your business and you don 't mind the risks the sole proprietorship is by far the easiest way to set up a business. I know a few people that do this and they have said that it is best to always run within their means, which in a way is a good way of doing things. However it does not leave room for you to make your business grow Partnership A partnership, Consists of two or more people who share the ownership of a single business. Like in a proprietorship, the law does not distinguish between the business and its owners. The Partners should have a prearranged agreement of how decisions will be made for their company, the profits will be shared, how disputes will be resolved, how new partners will be brought into the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed. Although it sounds silly thinking about dissolving the company before its started, many companies break up in times of
| In a sole proprietorship, the business and single owner are one in the same. A single owner makes all decisions with regard to the business and the single owner retains all profits earned by the business. The single owner is also responsible/liable for all debts and obligations of the business on a personal level.
• LIABILITY – All liability rests in the sole proprietors shoulders. There is no hiding from liabilities of the company for the owner, nor is the business sheltered from liabilities of the proprietor. • INCOME TAXES – Since the owner and his/her business are one in the same, all income is then treated as personal income to the
Sole Proprietorship Sole proprietorship is the most common form of business in the United States. It is a relatively simple way for an individual to start a business since legal costs and business requirements are minimal, and the owner has complete control over the business. Though a sole proprietor is not responsible for any corporate tax payments, the owner is responsible for taxes incurred on the income generated from the business as part of his or her personal income tax payments, and personally shoulders any other risks or obligations. A sole proprietor may also choose to file their business under a fictitious business name or a DBA (doing business as), allowing him or her to operate and market the business under a more typical
Sole proprietorship: Is the simplest and most common business structure. There is no legal distinction between the proprietor and the business, which means it is autonomous. You are entitled to all profits and responsible for all your business's losses and liabilities.
Liability: The owner/operator of a Sole Proprietorship is subject to full and unlimited financial liability for the business. The owner and the company are legally the same entity. The company’s assets are legally the same as the owner’s personal assets.
Sole Proprietorship: This is a type of business is where the business and the owner are one in
Sole Proprietorship would give you complete control since you assume all the risks, which mean you get all the profits, but you also suffer all the losses and liabilities. There is little to no paperwork to be done with a sole proprietorship. You only pay personal income tax to include Social security. The business doesn’t have to file a tax return, but you are still liable for payroll, unemployment and compensation taxes (Clarkson, Miller, & Cross, 2016).
Sole Proprietorship: A type of business that is owned by and run by one person with no legal difference between the business and the owner. It is easy to form with no cost or time to initiate. It gives the owner the ability to self-govern the business. There are drawbacks; only one owner can be established not allowing a partner. Also, unlimited liability puts the owner’s personal assets in jeopardy with the creditors.
Sole Proprietorship: The word proprietorship can sound intimidating. It is important to remember that most things are simplified with knowledge. If your business is a sole proprietorship then you as an individual are the owner and operator of that business. This means the sole proprietor handles everything from setting up
Even though there are also many advantages of a sole proprietorship, there are other alternative forms of business organizations that I would recommend, such as a general partnership. A general partnership is a form of business organization that comes into existence when two or more persons carry on business together with a view to a profit. In order to form a general partnership, a series of criteria must be met and understood such as; the partnership must register its name and obtain a business license, a partner cannot be employed by the partnership, all benefits of the partnership business must be received by the partners directly, all partners are personally liable for all the obligations of the business.
Some advantages of a sole proprietorship are that they have flexibility in operations. The sole proprietorship business is undertaken on a small scale. If any change is required in the operations, it is easy and quick to bring the changes. Another advantage in this type is the ease of promptness in decision-making, autonomy. When the decision is to be taken by one person, it is guaranteed to be quick. Thus, the entrepreneur, as a sole proprietor, can arrive at quick
"What are the three basic forms of business ownership? What are the advantages and disadvantages to each?
What are the pros and cons of three main types of business organizations (sole proprietorship, partnerships, and corporations) and which would be the best type to pursue?
The future of the music industry is currently undetermined as the technological development brought significant changes to the traditional music business environment and consequently the new music business practices are to be developed. The Australian music market is one of the largest in the world, being the sixth largest market in terms of revenues and the seventh in the digital sales (Music Australia, 2017). Live performance plays the important role in the music sector and the live music sector in Australia has an output of $1.5 billion and contributes up to $1.2 billion annually to the Australian economy (Music Australia, 2017). At the same time, the rapid spread of digital technology place new
There are two types of partnerships one of them being limited partnership. Limited partnership is a type of partnership in which at the minimum one of the owners of a business is a limited partner and at least one of the other partners has limited liability, that is, he/she is a limited partner. Unlike general partners who are involved in every aspect of the business from making day to day business decisions to being personally responsible for all the debts of the business, limited partners are just investors in the business venture and therefore have very little to no influence at all on the everyday operations of the business.