Success And Sustainability Of A Business

2004 Words May 10th, 2016 9 Pages
Many entrepreneurs aspire to own or operate their own business. After deciding on the purpose and mission of the company, one must chose a form of organization for the business to operate under. These organizational forms include sole proprietorship, partnership, corporation or a limited liability company. Not only does this decision determine how many individuals are involved in the ownership of the business, but it also determines what laws, regulations and guidelines must be followed to ensure success and sustainability of a business.
Across the United States, the majority of small businesses are owned and operated by one person, which is called sole proprietorship (Liuzzo, 2016). As the most widespread, least expensive business to establish, many small business entrepreneurs tend to take this path to avoid the need to hiring employees, pay for expensive locations, evade corporate taxes and to maintain complete control of all business transactions. Evident by the 2013 tax returns, the benefits of sole proprietorship sound appealing with approximately 24.1 million individual income tax returns reported sole proprietorship activity, a 2.2 percent increase from 2012 (Dungan, 2016).
Although the advantages appear to be rewarding for this independent business adventure, being the primary owner faces a number of difficulties. These disadvantages are not only hardships for the business but they are also direct liabilities for the business owner. The owner has unlimited personal…
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