Chapter 24 - Kerry Bordelon Chapter 24 Summary Chapter 24...

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Kerry Bordelon Chapter 24 Summary Chapter 24 is about sole proprietorships, partnerships, and limited liability companies. There are many differences between all of these that will be discussed. There are advantages and disadvantages to all, which will also be covered. Some are more complicated than others. A sole proprietorship occurs when only one person owns a company. It is the simplest form of business. Since the owner is the business, the owner may control all aspect of the business however they see fit. More than two thirds of all U.S. businesses are sole proprietorships. And about ninety nine per cent of these take in less than one million dollars a year. There are advantages and disadvantages to owning a sole proprietorship. One of the advantages is that the owner has the right to all of the profits that the business brings in. It is usually easier to start a sole proprietorship than any other business, as there are only a few legal formalities involved. No documents need to be filed with the federal government to start the business, although there may need to be state documents filed. A sole proprietor only needs to file personal income tax on the profits made since they may all be thought of as personal revenue. As many advantages as there are to owning a sole proprietorship, there are as many disadvantages.
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