Types of Businesses in America
American society has always been optimistic towards their future. The American nation is a capitalistic country. Many individuals are influenced to start up their own businesses with their own ideas. The government helps and regulates all business. There are three types of businesses sole proprietorships, partnerships and corporations. A sole proprietorship would be my best choice to start up my own business. This form of business is the easiest to start. In the states a federal license or permit is needed to sell products or serve a service to the public. A license is required in order to begin the business operation. Income or loss the owner is accounted for on the tax return. “Flow thru taxation” is the term used to state that the owner’s incomes flows through the tax return. I would keep contact daily with my accountant. The business would not be taxed twice as there would be in corporations. It is simply taxed once. I would not need contracts stating two people joining in and making an effort to make a business work as there would be in partnerships. I would just rely on myself. I have better confidence of trusting myself than trusting others in forming a partnership. It is a gamble and a risk to be liable for the entire business. Life is pretty short and taking a risk would either mean it was worth it or you learn from it.
Since it’s the easiest form of business to start why not take full advantage. But there are advantages and disadvantages. In a sole proprietorship there is limited capital which means the owner would have trouble getting the supplies and materials needed for. But it would also seem harder to borrow money and loans from the bank. A loan from the bank seems like the easiest way to earn money but because of unlimited liability banks have trouble lending their money to just one person. It would cost them a lot. The owner is liable to pay back the loan borrowed. Banks have trouble trusting that one person. That is why most businesses are mostly started by the money that was saved or earned through couple of years. It might take years for one to have all the materials and necessary start up their own business. It would also be a hurdle to overcome on how to get all materials necessary. In my business the laundry mat would need all the resources. Laundry mats consists of washer machines, drying machines. The place should be regulated with fire extinguishers in case of any emergency with the manufactures machinery. The structure of the building would be tested to hold as many people and machines and keep many safe. The adults and kids would be seated in comfortable seats and can be entertained with televisions or by radios. Video machine booths can be bought just to entertain kids. Cash registers would be operated by 2-3 employees where they will be managing daily all the time.
Time is very important on how much would be needed to start up the business. I would have all the freedom to...