Small Business Idea - 1156 Words

Small-Business Idea Paper University of Phoenix ACC 561 Small-Business Idea Paper There are numerous factors affecting the type of business organizations that an owner should form, so that it is most beneficial for him and the product or services provided. In this paper, the four business structures are evaluated and the association of the legal, tax and accounting implications with the different structures are also discussed. Suppose that the government has released funds to set up small businesses, I would set up a language services company. The services will include translation, transcription, interpretation, copywriting and proofreading. Most companies nowadays provide services internationally. It is, therefore, important to be†¦show more content†¦It is, therefore, subjected to â€Å"double taxation†, which means that profits are taxed and shareholders are taxed on the dividends that are paid on the stock they own and any profits they receive on shares of stock that they sell (Tiwary, 2008). The ownership claim in corporations is defined by the amount of shares owned and can be easily transferred by selling off the shares. Because individual share can be easily bought, raising capital is easier for a corporation than the other business structures, particularly in â€Å"S† corporations. In corporations, the stockholders are protected from the liabilities and debts of the company, although they pay higher taxes on the dividends received from the company. A corporation also ensures the continuity of life if one owner dies. A corporation has more legal issues to handle than the other business structures because it is large and publicly traded. Everything needs to be documented and filed and general meetings must be held at least per annum. All actions affecting the operations of the company, such as mergers and establishing new business ventures, must be discussed, recorded and filed. This also means that because corporations trade publicly, they are required to provi de extensive financial statements such as the balance sheets, income statement, cash flow statement and retained earnings statement. They need these statements to attract more investors and increase capital. Corporations are also liable to the SOXShow MoreRelatedSmall Business Idea1521 Words   |  7 PagesSmall Business Idea ACC 561/Accounting January 30, 2012 Small Business Idea Introduction Starting a small business can be daunting, exciting, and rewarding. A proprietor must consider which form of business organization is best suited for his or her product or service. There has to be consideration with legal, tax, accounting, and other implications when selecting from the four business types. This paper will explore the advantages and disadvantages of sole proprietorship, corporationRead MoreThe Importance Of Business Ideas With Small Capital880 Words   |  4 PagesBusiness Ideas with Small Capital Filipinos are naturally creative. And it is just a waste how some would rather do nothing when they can make use of their time doing something that can help their families. Probably, one big reason that stops them from engaging themselves with worthwhile activities, such as building their own business is the lack of capital. And I do understand how some of them would rather try their luck winning the lotto instead. However, if one would really think of all the opportunitiesRead MoreEnterprise, Entrepreneurship And Intrapreneurship. Enterprise1638 Words   |  7 Pagescan use to develop a business and how a new/fresh business can help the economy and third world countries too. This report explains what can go wrong within a business and what sorts of misconceptions there are, and if they’re true or not. Definition of enterprise, entrepreneurship and intrapreneurship Enterprise is a project that is especially bold, difficult or complex such as starting a business for example THE BBC or Oxfam. An entrepreneur is somebody who creates a business/company with a higherRead MoreThe Concept Of An Entrepreneurship1345 Words   |  6 Pagesby many different people. The Business in Action textbook defines entrepreneurship as the combination of innovation, initiative and willingness take risks required to create and operate new businesses and an entrepreneur as a person with positive, forward-thinking desire to create profitable, sustainable business enterprise. According to this definition, a small business owner could definitely be classed as an entrepreneur, as anyone who runs and owns their own business is taking risks with their financesRead MoreRaising Capital For Any Startup1324 Words   |  6 PagesRaising capital for any startup in Nigeria is hard, and it is discouraging to invest in a business idea that is not easy for some entrepreneurs. Applying for secured personal loan or even a loan without collateral is not promising to anyone too. So, if you are looking for a business loan without collateral, you have to understand that getting a small business loan without collateral is certainly tough in today’s economy. That’s why you find a lot of searches on internet about â€Å"how to get loan withoutRead MoreEntrepreneurs Case Study1127 Words   |  5 PagesIntroduction The White House would like to raise exports by small business, however the unreliability of the global market is frightening the enterprise. President Obama would like to help out small businesses by asking Export-Import Bank to rise export funding by more than a third, to 6 billion dollars. With these increases he hopes to double American exports and encourages small businesses to go abroad. It is extremely hard for small businesses to go abroad though when the larger businesses dominateRead MoreImpact Of Entrepreneurship On Business Management1495 Words   |  6 PagesEntrepreneurship is defined as the process of designing, launching and running a business. It typically begins as a business idea such as starting a small business, offering a product or service. What is unique about this venture is the possibility and level of risk involved for instance lack of funds, an unforeseeable economic crisis or poor business decisions. Entrepreneurship is about how people identify opportun ities, evaluate whether they are viable and then decide to exploit them or not. TheRead MoreEssay on Innovation At International Foods744 Words   |  3 PagesBig business versus small business has been an issue since business started. Small businesses need to have a solid structure and a large backing of consumers to survive against big business. Josh Novak had a successful model for Glow-Foods and International Food Group (IFG) saw that. They were so impressed with his IT plan at Glow-Foods, they offered him a job at their IT office with a team to help their demographic. Josh was excited yet hesitant as he knew IFG was nothing like his small businessRead MoreBreak Even Analysis1227 Words   |  5 PagesBreak Even Analysis In business planning, asking the proper questions and obtaining answers to those questions is arguably the most important thing. Questions such as; how much do we have to sell to reach our profit goal? How much do our sales need to increase in order to cover a planned increase in advertising costs? What price should we charge to cover our costs and allow for the planned profit goals? Is our business going to be profitable? Answers to such difficult questions become accessibleRead MoreA Study On A Business997 Words   |  4 PagesStarting a business does not necessarily make one a startup founder - as the business may not necessarily be a startup at all! While it may have the potential to make the founder wealthy, it still may be a small business that can become huge in the future. Although these sound similar concepts, startups show up stark differences from conventional small businesses once we understand their fundamentals. I have had the fortune of being and working with hugely talented and entrepreneurial folks over