Business Organizations Your Supervising Attorney P. Strami And

Business OrganizationsDate:To: P. Strami and Mable BaconFrom: [Your Name]Re: Business Formation of Potential Cardigan Home StoreThe potential Cardigan home store may be organized as a sole proprietorship, partnerships, or a corporation. Below is an analysis the pros and cons of possible forms of business organizations for Cardigan Home Store. Sole proprietorshipProsA sole proprietorship is the simplest form of business organization. It is In fact the default form when person begins conducting business without taking any steps to form a business entity. Business formation cost therefore is nil. With a sole proprietorship there is no tax liability in transferring business assets between the owner and the business as both are legally one and the same person.As the government does not differentiate between a sole proprietor business and the individual, the earnings of a sole proprietor are considered personal income which means tax reporting is simplified to tracking business income and expenses and filing this on schedule C alongside personal tax return.ConsIn a sole proprietorship business the business owner and the business are not legally separated. The import of this is that both the business and the owner are legally liable for liabilities incurred by either of them. Should the sole