Comparison of Business Entities You own and run a Plumbing business, operating as a sole…

Comparison of Business Entities

You own and run a Plumbing business, operating as a sole proprietorship with 10 employees. You as the owner have decided to reconsider what type of business entity you want to be and have decided to research which would be the best type to grow your business, protect your assets, and provide the biggest tax advantage.

  1. Research, list, and describe pros and cons of the 4 types of business entities listed below for each of these factors:
    1. Ease of dissolving or closing your business
    2. Ability to raise capital
    3. Legal Liability of owners, partners or shareholders

    Ease of start-up / How it is formed

The 4 types of business entities that should be discussed are:

    1. Sole Proprietorship
    2. Partnership
    3. Corporation
    4. LLC
  1. Research and report the regulatory requirements for your business for the county and state in which you live to operate your business.
    1. City or county regulations?
    2. State regulations?
    3. Do these vary depending on the type of organization? If so, how?
  2. Report on the regulatory requirements for the hiring of employees.
    1. Basic hiring regulations?
    2. What state and federal forms are needed?
    3. Which laws govern nondiscrimination in the hiring process?
  3. Up to this point, you’ve only accepted cash or checks, but now you want to accept credit & debit cards, as well. Research three different types of companies that offer the hardware and software to accept credit and debit cards. At least one of these needs to be a bank, researching the structure of how they charge (dollar amounts, # of transactions, different for credit than debit, etc.).
    1. What three companies did you research?
    2. List three pros and three cons for each company.
    3. List how each company will charge you for the debit/credit transactions that you accept.
    4. Based on research above, what company will you choose to process your POS transactions explaining in detail how you made this decision?
  4. Based on your research and your business’ specific situation, which type of business entity is the best approach, in your opinion? Provide detailed reasons for your response.

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