Business Structures Fundamentals of Business Sole Proprietorship Business

Business Structures Fundamentals of Business

Sole Proprietorship Business is owned and operated by one person Owner assumes all Legal responsibilities Financial responsibilities John = Hair Cutters, Hair Cutters = John Easy to Start Up – (Just register Name) Taxes up approximately 73% of all businesses and only 5% of all US revenue Makes

Partnership Two or more owners who share financial and management responsibilities. Share profits and losses by agreement. Personally Liable for Debts of Business should it fail. John and Alyssa = Hair Cutters, Hair Cutters = John and Alyssa If new partner, old partnership is dissolved and new partnership agreement must be made. Taxes Why form a partnership?

Corporation Business that operates as an entity separate of its owners. Hair Cutters, Inc. ≠ John, Alyssa, Carlos ≠ Hair Cutters, Inc. Only Corporation Liable for its own debts. Owner’s no liability for debts. up 20% of all businesses and 89% of all US revenue Makes

What’s a franchise then? 1) 2) 3) 4) Written Contract granting permission to operate a business in a set way. Franchiser v. Franchisee Start up Costs Franchise Agreement 1) 2) Name, Product Quality, and Operating Procedures Day to Day Business