Determining_Your_Perfect_Position

Determining Your Perfect Position Field Williams Sr. LDR/531 Organizational Leadership March 9, 2010 Professor Mary-Lynn Ament Basic Business and Personality Formation Regulatory Implications for Forming an Entity To form a business, one must keep in mind the legal regulatory of business entities. Business organizations fall under many different types. These types are Sole Proprietorship, Partnership, and Corporation (University of Phoenix, 2002). It is essential to analyze how each function operates and consider their upsides and downsides. Analyzing Several Entities Sole Proprietorship Advantages A sole proprietorship is the simplest and cheapest way to start. An organization owned by only one person is a sole proprietorship.The sole proprietor is in control of his or her business’s goals and daily operations (University of Phoenix, 2002). Sole Proprietorship Disadvantages The owner is personally responsible for the debts of the business which makes it a downfall for the sole proprietor. A sole proprietorship is not taxed as an organization. All the proprietorship’s income subject to taxation is attributed to the proprietor (University of Phoenix, 2002). Partnership Advantages A Partnership is formed with two or more individuals. The formation costs are not significant. Partnerships are entities not entitled to pay taxes. Unless there is a contrary agreement by parties, each partner has an equal voice in management. A partnership may function in more than one state without ever obtaining a legitimate license to conduct business. Partnerships generally are entitledto less regulation and less governmental supervision than are corporations (University of Phoenix, 2002). Corporation Disadvantages Business Advice and Legal Entity Choice When choosing professional business advice, individuals must take into consideration the professional’s qualifications and their different talents and skills. Besides, there are people with aggressive personalities, others whom are easy going, and have leadership qualities (Capozzoli, 1999). Even so, selecting the appropriate legal entity for an individual’s business is most challenging. According to Phil Agre, there are essential strategies to arrive at good advice. First, know the goals. Once an individual can explain what he or she cares about, then one can build a community of people who also care about that interest. Second, identify some relevant people. In the world of business, mutual interest is almost always defined through the content of one’s research: you wish to contact people whose research bears some important relationship to your entity (Agre, 11 June 2003). The Best Professional Advice Choosing the right entity. As mention earlier, the idea of opening a commercial cleaning business sounds practical. Picking the least cost formation would be the natural proper choice. The advantages a partnership share will best suit First Class Cleaning Services. Partnerships are not a tax-paying entity. Each partner has an equal voice in management (University of Phoenix, 2002). Conclusion References Capozzoli, Thomas. Conflict resolution – a key ingredient in successful teams, Supervision, Burlington: November 1999, Vol. 60, Issue 11; p. 14, Retrieved March 5, 2010 from: http://gateway proquest.com/openurl'ctx_ver=z39.88-2003 University of Phoenix. (Ed). (2010). The Legal & Regulatory Environment of Business [University of Phoenix Custom Edition e-text]. New York: The McGaw Hill Companies.Retrieved March 6, 2010, from University of Phoenix, Resource, Law/529-Legal Environment of Business Web site: https://mycampus.phoenix.edu/secure/resource/resource.asp Phil Agre Department of Information Studies University of California, Los Angeles Los Angeles, California 90095-1520 USA: 11 June 2003. http://polaris.gseis.ucla.edu/pagre/network.html#section12