TLAW 402 Assignment Man Zhang 20142026 John Taouk XX/ No. XX, Kensington st, SYDNEY NSW 2000 BY EMAIL Johntaouk@hotmail.com Dear Client, YOUR PROPOSED START UP MEN’S FASHION BUSINESS Following our previous conversation, as you mentioned that you are interested in forming a new business entity for a fashion business. I’m writing this letter, which designed to introduce you to some of the considerations regarding the type of entity that is best for your business. Besides, the director duties that you should be aware of are enclosed. We will need to discuss these considerations in details and to analyze how they relate to your particular business. This letter will provide you with background information and details of company …show more content…
SOLE TRADER (Sole proprietorships) It’s also called as sole proprietorships. A sole trader is regarded as simplest form of business structure. It is also relatively easy and inexpensive to start and maintain. It is a private company that regulated to be a company with less than 50 members who are not employees. Many sole traders choose to trade under their own name- for example, Stella McCartney. While other business structures require businesses to register a business name with Australian Securities and Investments Commission (ASIC). The business style could be your home-based business and contractors. Being as a sole trader, you are able to retain complete control over your business. As there is no division between business assets or personal assets, which includes your share of any assets jointly owned with another person (such as your house or car). Your liability is unlimited which means that personal assets can be liable for any business debts. The advantages of sole trader includes: - Simple set up and operation - You retain complete control of your assets and business decisions. - Fewer reporting requirements - Any losses incurred by your business activities, may be offset against
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| 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.
Sole trader is where a business is run as an individual; so that all profits are their own after tax has been paid on them. Within a sole trader organisation it is possible to employ staff, as the sole trader only means that you own the business personally and do not actually have to work by yourself.
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.
A sole proprietorship is a form of business that is owned by a single individual. • Liability – Due to the lack of legal distinction between the owner and the business, the owner is fully responsible and liable for all debts that the business incurs in the same manner that an individual is fully responsible and liable for all debts that they incur. There is no legal distinction between the assets of the owner of the sole proprietorship and the business; this means that creditors have the ability to come after the owner’s business and personal material assets. Income Taxes – Since the business is the same as the owner of the sole proprietorship, all profits or losses from the business are filed by the
LIABILITY – There is no separation between the individual and the business. As the owner and operator of a sole proprietorship, all of the profit and loss is the personal responsibility of the business owner creating unlimited liability.
“We have completed this assignment on our own and have not discussed it with any other individual or used any other unauthorized aids. We acknowledge compliance with the academic requirements (e.g. citation of sources) of the University of Toronto.”
I own and operate Pretty Baked on my own. I chose to be a sole trader because it is the simplest and cheapest structure to establish especially when opening a small business like I am. I receive all the profits but I also suffer all the losses. This structure is suitable for my business because it is easier for a small business and there is no one else to blame but my self. If I put my self in a bad situation, I would have to get out of it my self, which will make me a stronger business woman for further problems to come. Being a sole trader means that I have unlimited liability. This is not necessarily a good thing but it is what I chose, as I have to take responsibility for my business. Due to the unlimited liability, I may be forced to sell
Sole trader-it’s a business that is owned by only one person and it can have one or more employees. This type of business organization often succeeds because the owner has total control of businees, the owner keeps all profit and it’s cheap to start-up,but also it can be difficult to raise financial,it may be difficult to specialise or enjoy economies of scale and can also have problems with continuity if sole trader retires or dies.
The advantages to the sole proprietorship are single control over the business and its decisions, easy to start up, less regulations and paperwork burden that the other types of business. The disadvantages are unlimited liability for their company debts and actions. The law does not recognize any distinctions between the owner’s business assets and personal assets. Banks are very skeptical about lending to these types business because there is only one person to hold liable for repaying the debt.
G 3 Fashion House is an urban men and women’s clothing retail establishment that will sell and is currently selling fashionable clothing for both men and women with our prime product being Urban branded clothing. G3 fashion House is currently located at shop 29 Town Square mall Windhoek, Namibia which is a popular youth shopping destination. While our initial goal is to open two boutiques in respect to the one we intend to open in your advertised space to Let, expansion plans include potentially franchising our retail store and/or building a well-recognized brand name. In turn, we would hope to penetrate a sizable portion of the online retail market.
But with advantages, there are also disadvantages of owning your own business. Five disadvantages of a sole proprietorship are: 1) The owner is personally liable for all debts and incurs all losses. The sole proprietor is responsible for all debts that the company owes. The owner takes all losses. There are no other owners to
Those legal structures are: sole trader,partnership,partnership with limited liability(LLP),private limited company (LtD) and public limited company (PLC).
Peg and Kris, LLC is a new online clothing company that got its start in June of 2016 (Peg and Kris, LLC, 2016). It all began when two former employees acquired Kayce Hughes, LLC, a seventeen-year-old company and lifestyle brand (Peg and Kris, LLC, 2016). Kayce Hughes, the brand, was centered around custom-designed clothing for women and children (Hughes, 2016). The brand focused on classic, vintage-inspired designs with unique details that were typically made from cotton. At its peak in 2014, Kayce Hughes, LLC owned and operated three retail stores in Chattanooga, Tennessee; Nashville, Tennessee; and Atlanta, Georgia. The company also conducted a substantial amount of business online and through national trunk shows. In addition, Kayce Hughes, LLC sold its children’s line at wholesale prices to specialty boutiques (Hughes, 2016).