Forms of Business organisations

Forms of Business organisations

Proposal Task:

Dear Consultant,

I am currently starting a business and developing my business plan. I’m in need of some advice on how to start forming my business.

I am not sure exactly how it will be financed and whether or not I want to take on partners. I am interested and willing to learn the intricacies of my options to determine how to best proceed with my plan.

Please advise on what my options are, the advantages and disadvantages of each, and possible tax consequences for each scenario?

Respectfully,

John Owner

Word Count

603

Format

APA

Answer Preview

There are various options open to you on how you can organize your new business. The different forms of business organizations will affect the legal liability of the owner and the business, and the treatment of income tax.

Sole proprietorship

In this case, you will operate the business as its sole owner and although you can use a business name, this form of business will not distinguish you from the business. Its advantages include…