The Business Form of Green Valley Within the Area in SCNU

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1.Business entity2.Sole proprietorship3.Unlimited liability

KEY TERMS

What's the business form of Green Valley?

The answear is: Sole proprietorship

Definition:A business structure in which an individual and his/her company are considered a single entity for tax and liability purposes. A sole proprietorship is a company which is not registered with the state as a limited liability company or corporation. The owner does not pay income tax separately for the company, but he/she reports business income or losses on his/her individual income tax return. The owner is inseparable from the sole proprietorship, so he/she is liable for any business debts. also called proprietorship.

In other words:

A sole proprietorship is a business owned and managed by one person.A sole proprietor can be called the company.

A sole proprietorship is a business entity with a single owner/operator. A business entity is a professional organization offering something that has real existence. The following factors characterize a sole proprietorship.

The characteristics of sole Propreitorship

A. It is the oldest, most common, and simplest form of business organization.B. One person can serve as the business decision-maker.C. No registration with the state is required, as is necessary with a corporation or a limited liability company (LLC).

The characteristics of sole Propreitorship

D. It is easily set up and maintained.E. The owner is personally responsible for assets, income taxes, and business debts.F. It is relatively simple to manage and control.

The characteristics of sole Propreitorship

E. Start-up costs may be minimal.F. A sole proprietorship is a good type of organization for a business:1. That will remain small2. That does not have great exposure to liability3. That does not justify the expenses of incorporating and ongoing corporate formalities.

The advantages of sole Propreitorship

A sole proprietorship has several disadvantages.A. Raising capital to start the business is difficult.1. Banks are less willing to lend money to one person for a business venture.2. Banks that approve loans may have higher interest rates.

The disadvantages of sole Propreitorship

B. The owner has unlimited liability. Both the business and personal assets of the sole proprietor are subject to the claims of creditors. When the owner assumes unlimited liability, he or she may lose all personal and business assets to pay bills or money owed to other parties.C. The business ends if the owner dies.

The disadvantages of sole Propreitorship

D. This owner is responsible for the entire business.E. The owner is responsible for personal health insurance.F. The owner is responsible for withholding and paying all income taxes.

The disadvantages of sole Propreitorship

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