Starting the Business

Starting the Business - 1 1 Erik Sander: EGN6640 Choose the...

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Unformatted text preview: 1 1 Erik Sander: EGN6640 Choose the right type for now and later (Sole Proprietorship, Partnership Corporation Partnership, Corporation) Life style to breakthrough risk / return Acquiring vs. starting a business Capitalize intelligently understand valuation & needs of future investors Always focus on success early decisions have a great effect at the end when theres real money involved Involve family & friends? Loyalty and trust vs. making hard decisions (your kids or their kids eat) Erik Sander: EGN6640 2 2 Your vision regarding the size and nature of your business. The level of control you wish to have. The level of structure you are willing to deal with. The business' vulnerability to lawsuits. Tax implications of the different ownership structures. Expected profit (or loss) of the business. Whether you need to reinvest earnings into the business. Your need for access to cash out of the business for yourself. Erik Sander: EGN6640 3 Source: Taken substantially from www.sba.gov Sole proprietors own all assets and profits and assume responsibility for liabilities.You and the business are one Advantages of a Sole Proprietorship Easiest and least expensive form of ownership to organize. In complete control, proprietors may make decisions as they see fit. Sole proprietors receive all income generated by the business. Profits from the business flow directly to the owner's personal tax return. The business is easy to dissolve, if desired....
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This note was uploaded on 11/21/2011 for the course EGN 6640 taught by Professor Eriksander during the Fall '11 term at University of Florida.

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Starting the Business - 1 1 Erik Sander: EGN6640 Choose the...

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