Business Name: Patel supermarket Products and services offered: grocery, medicine ,fresh fruits and vegetables, cosmetics, household cleaner, seasonal items like umbrella, raincoat ,etc.Also provide services like mobile recharge, Myki recharge, selling of mobile card. Legal form: sole trader Sole trader business is an individual who sets up his/her own business. This business is self controlled and also responsible for all assets and liabilities of business. sole trader ship is a business entity owned by one person. The business and the sole trader are one legal entity. A sole trader business is the easiest business structure to form due to the legal number of formalities Business type :merchandising products(retail) Legal requirement: …show more content…
Exchangeable : it is very easy to change into another form of business if your business grows up. Freedom for certain government regulations: There is no need to pay payroll tax, compensation of workers, superannuation in sole trader business. Also u can use your TFN number to lodge your tax returns, privacy: owner get completely privacy in terms of decision making profit. quick decision making: Decision making process become easy without any conflict. I don't choose partnership or company because of their drawbacks: Drawbacks of partnership: • joint and individual liability: Members have unlimited liability as they are liable for the debts of the business. In addition, personal assets of all partners can be used to satisfy the partner's debt. • Disagreements among partners: there may be chance of some disruption during decision making process. • shared profits: Also profit sharing equally although having an uneual contribution of time, effort, or resources can cause discord among partners. Disadvantage of starting company: It is expensive to start-up, maintain and shut up. • Also complex structure ,registration process is difficult. • Company required large amount of money. • In company, profit shared to share holders. • in case of loss,owner have to face so much risk in terms of returning finance ,also hard to shut up . Financial source for business Finance: money source of finance: This is where we get money for business why business need finance: • starting
| A sole proprietorship is easy to create; there is minimal creation cost and time.The single owner has autonomy in decision making; sole owner makes all decisions related to the business and has complete ownership of business’s finances.
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.
Due to its nature, partnership is generally liable for the acts of the individual partners if committed in the course of the partnership business. However, liabilities of every partner may be regulated by the written agreement signed by partners. If no written agreement is signed by partners, liabilities of the partnership are regulated by the Partnership Act. If one of the partners retires, he or she may not be liable for the future debts of partnership if an official notice of the change is sent to creditors and the public. However, there were no official notice sent by the partners in the case; therefore, Toby may be liable for the debts of partnership. Due to the death of the third partner, partnership may be dissolved. In order to pay off the debts, assets should be sold and partners are free to continue the same kind of business after the dissolution of the
Sole proprietorships are the most common type of business in the U.S. They are most commonly chosen because they are the easiest type of business to set up and give the sole owner of the company complete control of the company. There are many benefits to a sole proprietorship in regards to control, profit retention, and convenience.
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.
SOLE PROPRIETORSHIP: Has only one owner. Easy to start up. Some of the advantages are: owners may do whatever they want to with the business and if they want to go on vacation they can. One of the disadvantages they cannot bring in another person to help run the business. This business form is particularly common.
also can have risks; as the owner you cannot bring others into the business, so the
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.
General Partnership: Occurs when two or more individuals get together to operate a business with the intention of making profit. Each individual is a general partner of the business and all profits and losses are shared between the partners. General partnership agreements can be a written or verbal agreement.
Depending on the % of partnership the liability will be decided. If the partnership is limited by some % then the partners will be responsible only fro that much % only.
A partnership is a business organization where the partners own the business together and are
One issue with general partnerships is how to value a partner’s share of the business. Most times when the articles of partnership contract is agreed they will include a buy/sell agreement that contains details of a withdrawing member of the partnership.
Sole traders have unlimited liabilities,meaning that in terms of law there is no separation between them,hence the sole trader is also liable for the debts incurred within the business, which makes it very risky to run for a long-term.