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 or ganization and the new stockholder’s election provision.

SOLE PROPRIETORSHIP

The simplest form of business organization is the sole pro prietorship. 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.

ADVANTAGES OF OPERATING AS A SOLE ROPRIETOR

Minimum legal organization requirements.

It affords the greatest amount of privacy one person is sole owner.

It gives greatest personal contact with customers, employees, etc.

It permits relative freedom from government control.

No income tax levy on business (but on owner only).

It often has very real social security and income tax advantages.

But this form of operation does have disadvantages. Read the following list and again check whether this form of operation is correct for you. Small Business Solution - Read More.