Form of business and financing

Articles In This Section:

· Form of business and financing

· BUSINESS ADVANTAGES OF OPERATING AS A SOLE PROPRIETOR

· BUSINESS DISADVANTAGES OF OPERATING AS A SOLE PROPRIETOR

· BUSINESS FINANCING

· WHAT TYPES OF BUSINESS LOANS

· LOANS FOR THE BUSINESS

· A LINE OF CREDIT FOR THE BUSINESS

· How a Sole Proprietorship is Taxed

· BUSINESS ADVANTAGES OF THE PARTNERSHIP FORM

· BUSINESS DISADVANTAGES OF THE PARTNERSHIP FORM

· THREE RULES AS BUSINESS PARTNERS

· BUSINESS TAXATION

· BUSINESS CORPORATION

· BUSINESS DISADVANTAGES OF THE CORPORATE FORM

· BUSINESS CORPORATE FINANCING

· BUSINESS STOCKHOLDER ELECTION TO REPORT CORPORATE INCOME

· MAKING THE BUSINESS ELECTION

· HOW THE BUSINESS ELECTION IS LOST

· BUSINESS ADVANTAGES AND DISADVANTAGES OF STOCKHOLDER REPORTING OFCORPORATE INCOME

In organizing your business enterprise, you should consider all of the legal forms for operation that are available to you. The ones most generally used are the sole proprietorship, partnership, corporation and, of late, the form of business which allows a corporation to elect to have its stockholders taxed directly. Variations of these forms include limited partnerships, joint stock companies, joint ventures, syndicates and trusts. This book, however, will discuss only the three basic forms of organization and the new stockholder's election provision.

SOLE PROPRIETORSHIP

The simplest form of business organization is the sole proprietorship. Choosing this form makes you and you alone the boss. You do not share profits with others. This is the form giving you the greatest freedom of action. You are not bound by restrictions of corporate charter, or partnership agreement. Read the following list of advantages of this form of operation. Apply your own factual circumstances to this list and see if this is the proper form for your contemplated enterprise.