Question

Explain what is your business and then tell us what legal structure (sole proprietorship, partnership, LLC, etc.) you would use and WHY? You must explain your decision!

Answer 1

I am in a business of restaurants. Although there are several different ways that I can organize my business and the structure of ownership, however not every type is viable will be viable for foodservice industry. In United States, the four main types of business structures are: sole proprietorship, partnership, corporation, and limited liability. With a goal to yield the highest profits and minimize taxes, my choice will be the sole proprietorship. In sole proprietorship the business will be owned by a single individual, a person who collects all the revenue from the business, and maintains all liability for the debt. Since the sole proprietorship is not taxable; and tax rate is also not high thus will be a good choice to minimize on the taxes and yielding higher profits. Moreover the structure is simple, and a common among family-owned and small restaurants businesses. Furthermore I can own an entire control over the business, thus can make any decisions or changes at my discretion