Business Types And Advantages Within The Music Industry

1786 Words Feb 3rd, 2016 8 Pages
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 proprietorship The sole proprietorship is by far the easiest and cheapest form of ownership to organize. A sole proprietor is in complete control, and can make decisions as they see fit, all the profits from the business go through to the owner’s personal tax return. The business is easy to dissolve, if thing get to difficult.

Disadvantages of a Sole Proprietorship Sole proprietors have unlimited liability and are legally responsible for all debts against the business. You essentially risk losing all your assets if your company goes bankrupt. As a Sole proprietor you are at a disadvantage if you are looking for loans to help you get projects off the ground, a lot of people end up remortgaging their house or…
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