Running Head: BUSINESS ORGANIZATION
If I were to start a business, I would start a Sole proprietorship business structure. This is because
this type of structure is easy to form and it requires a little amount of capital as compared to
other forms of business structures. Sole proprietorship also requires minimal requirement to start
up and is a good structure to try out various business idea first before venturing and investing
heavily into it.
This type of business requires only the individual who wishes to start the business. The
formation steps include having a social security number and taking the necessary business
permits and the required licenses (Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M.
2006). The business assets and the liabilities of Sole proprietorship are not separate from the
personal assets and liabilities. This means that the owner of the business is held liable debts of
the business. The taxation aspect of Sole proprietorship is friendly because the expense and the
income generated from the business are included in the individual’s income tax return. This is
because the law has no distinction between the owner of the business and the business itself
(Klein, W. A., Coffee, J. C., & Partnoy, F. 2007).
It requires little requirements and formalities to start up.
The owner has full control of the business and has the power to make decisions for the
It has minimal legal cost in the ...
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