Owning a Small Business Essay

1.Sole proprietorship – Provide an example of a sole proprietorship in your town or community. What might be some advantages to owning this business? What are some of the biggest challenges that the owner likely faces? †¢Subway is the business that is a sole proprietorship in my town. The advantages of owning this business would be I is a low cost to start the business up and it is continually ranked the number one Franchise. The owner likely faces running out of the topping they use to make the sandwiches with or not having enough dough for the bread. 2.Partnership – Provide an example of a partnership in your town or community. What are the advantages to this form of business organization? What might be some challenges of being a partner in a partnership? †¢Keller Williams is the business that is the partnership that is in my town. The advantages of owning a real estate business like Keller Williams would be the business could be one of the largest real estate franchise companies in the United States. The company will also keep growing with the more houses you sell and rent to people. The company also provides specialized agents in luxury homes and commercial real estate properties. Some challenges could be that your partner isn’t a good partner and hides things from you or that they just want to do things on their own and ruin the business that you guys own together. 3.Corporation – Provide an example of a corporation. What are the advantages and disadvantages of this form of business? How do the challenges compare to those of sole proprietorships and partnerships? †¢Summit Mountain is the corporation that is located in the town that I live in. The advantages of owning a business like this is that you get to live in the snow and you also get the snowboard ski and mountain bike for free. You also get the most beautiful views in Big Bear. You also get the chance to meet all kinds of people from all around the world. All the states and different cultures. The advantages of owning a business like this is that you get offered self-employment tax savings have a continuous life, limited liability, more money for investment and it also makes raising money easier. The disadvantages are extensive paperwork, double taxation, two tax returns, the size of the business, possible conflict with stockholders and board of directors. References †¢http://www.subway.com/subwayroot/Own_a_Franchise/default.aspx †¢http://www.kw.com/kw/aboutus.html †¢http://www.pe.com/local-news/local-news-headlines/20130705-big-bear-snow-summit-is-on-the-market.ece †¢http://www.legalzoom.com/incorporation-guide/reasons-to-form-corporation.html †¢http://faculty.valenciacollege.edu/srusso/ch5.htm