Using voice-over PowerPoint or YouTube, present and discuss the type of organization you selected in Week 1, the chart of accounts you plan to use in your company and the internal controls you would set up for your company.
Writing and interpreting results is a large part of your learning experience. These assignments are designed to improve your use of technology and communication skills. You will now be sharing your ideas with your classmates. Create a PowerPoint presentation discussing the key elements of the writing project. You may use the voice-over feature in PowerPoint or YouTube to present your PowerPoint.
You will upload a copy of your PowerPoint or the YouTube link to this discussion board AND comment to at least 1 other student on his/her presentation that you watched. Please be sure the audio is clear and the file or link is accessible in the Week 4 Presentation discussion board
ONLY POWERPOINT! NO VOICE WITH A SHEET IN WHAT TO SAY WHEN IM DOING VOICE OVER
ABC Company
Alexis Aguirre Leon
Keiser University
ABC Company
When starting a new business venture, it is always important to comply with all the legal
obligations in the Country. There is a range of legal requirements for a new business which I
must adhere to including financial regulations, tax obligation together with employment laws.
The first legal structure will be to decide on the legal structure of the business. For my business, I
will go for my sole proprietor. i want to be the overall owner and run the retail company on my
own. I have enough funds for the startup, and therefore proprietorship is the best in this case.
Then I will need to go ahead and register my business name. My business name is ABC
Company. This is an entity name that will protect my business at the state level. I will then go-
ahead to apply for a federal tax ID. It is a requirement by law that I comply with the tax body.
The federal tax identified number commonly known as Employer Identification which will grant
me the power to hire employees, pay federal taxes, open the business bank account and even
apply for the business licenses, this is important for my business since I will require to hire and
pay employees, file employer tax returns annually and make use of tax-deferred pension plan
(Steingold and Steingold 2019
It is a requirement that I obtain a business permit and license. I will apply for a business license
and permit at both the federal and the state government level. I will go to a retail business permit
since my business is retail. Insurance is vital for any business, and mine is no exception. I will
acquire business insurance for my company to protect the cases where liability protection is
insufficient. The business insurance will protect my assets together with the business asset too.
The coverage is also essential to preserve my startup from other potential risks in the market. I
will, therefore, acquire both general liability insurance and product liability insurance. The
general liability insurance will protect the business from financial losses like property damages
and medical issues. The product liability, on the other hand, will be vital for the sale products
and customer injuries
A bank account is essential for my business. It is a legal requirement that I separate my account
from that of the company. I will choose XYZ bank because it has the best interest rate together
with a high credit score. The bank also offers a lower banking fee for small business clients,
which is the case with mine. The bank account will be necessary for paying my employees and
saving the money collected in revenue. It will also offer savings for my business, which is
essential for the growth of my
business.
For my company, I have chosen to make it a sole proprietorship because I am building a simple
business model. I intend to role and control the business on my own and be responsible for it. I
choose Sole Proprietorship because of its simplicity, the ease of set up, and the nominal cost in
setting it up. The fact that I will be responsible for the overall set-up and the liabilities and debts
of my company is the other reason why I choose this model. Another essential idea is the fewer
formalities and paper works compared to those of the other (Abo 2019). Also, the fact no specific
tax is applied for this model makes me go it. In comparison with the other models, the sole
proprietorship is much cheaper, which is good to me since I plan to minimize the cost of setting
up the business. The sole proprietorship is the best choice for my business plan
The advantages of a sole proprietorship are enormous. First is that I will be in full control of the
company. Since I am the only one, all the decisions for the company will be made by me. I will
not need to seek the approval of anyone in matters of the company that will seem vital. It is more
comfortable running the business alone compared to the other business models. The second
advantage is that it is simplified and less costly. The forms to complete, the government fee and
regulations into entry are less for a sole proprietorship. It is, therefore, an advantage to my
business. The third is the talk of privacy, which is a critical concern in any industry. A sole
proprietorship does not file any formation of annual reports with the federal state or government
since my business is not subject to public disclosure (Khan 2017). There are only minimal
requirements that are suitable for securing business secrets.
The other advantage is the simple tax reporting associated with a sole proprietorship. The sole
proprietorship tax is always simplified reporting requirements and not having to pay separate
taxes for the business. I will not need to file any unique tax forms with the state or the federal
government. Another advantage is that I will keep all my profits. The profits from the business
are directly mine. I will not have to slip and share like in the other business models. Also, a sole
proprietorship is advantageous in that it is easy to change the legal structure in the future if need
be in the future. In the case that I will change my business model, it will be straightforward since
the system is simple. Other advantages include the low startup cost and the simple establishment
and control of the business
Although sole proprietorship has many advantages, it also has disadvantages. The common is
unlimited liability nature. Personal properties like cars and building or any form of personal data
are used to pay for the company’s debt in the case the company falls into debt due. This situation
shows no limitation of liability. The second is the limited financial resources in the business. I
have limited finances to manage since the company is small, and I have limited work experience.
Borrowing and investing in a small business is limited to the available funds, which hinders the
growth of the company. The third disadvantage is the lack of continuity of transactions. The run
the business is likely to be hard hence giving an unpromised continuity in business. Business
continuity for a sole proprietorship is always challenging to maintain (Khan 2017). The sole
proprietorship is faced with huge competition. The competition in this model is stiff since
everyone in the industry wants to be a sole proprietor in the business field. Such competitions
lead to negative issues that, in the long run, affect the running of the business.
Another disadvantage is the difficulty in raising capital. Funds required for setting up a sole
proprietor business are high, making it difficult to grow. Unlike the other models where the
company can collect funds public shares. The sole proprietorship is limited to getting only from
the personal savings and financial institutions in debts. This limits the investment that the
business can make. Also, it is a disadvantage in that the sole proprietor pays taxes individually. I
have to pay all the charges of the company personally since all capital has been used. The last
disadvantage is the fact that individuals have a limited capacity. Since I am supposed to run and
maintain business, I have some weaknesses, and the decisions I may make may affect the
business.
Reference
Abor, J. Y. (2017). New Venture Development and Sources of Financing. In Entrepreneurial
Finance for MSMEs (pp. 21-50). Palgrave Macmillan, Cham.
Entrepreneur magazine’s ultimate book on forming corporations LLC’s sole
proprietorships and partnerships
Khan, M. A. M. (2017). Seminar Paper on Sole Proprietorship Business (Doctoral dissertation,
Bangabandhu Sheikh Mujibur Rahman Science and Technology University).
Steingold, F. S., & Steingold, D. (2019). Legal guide for starting & running a small business.
Nolo.
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