Business Structure Advice

Topics: Corporation, Management, Limited liability company Pages: 3 (679 words) Published: March 23, 2014
Business Structure Advice
Name
University of Phoenix
FIN/571
J. Woods
December 4, 2013

Business Structure Advice
Dear John Owner,
Our consulting office received your letter in quest of advice on how to establish a business and develop a business plan. The Name Consulting Company will work hard to create a plan to advice your company on how to form a business, whether or not to take on partners as well as other options. Our team will assist with the establishment of your new company’s business plan, the crucial financial choices, and finalize legal actions. The above steps will assist with preparing a solid business plan and managing a successful business.

The Steps to develop a business plan
Step one is to write the business plan. The business plan is the map to a successful business, which outlines, and defines the goals and guidelines of how those goals will be accomplished. A business plan also assists owners with organizing thoughts, developing clearer ideas and how to project where the business is heading and how it will take to be successful. Most important the first question lenders and inventors will ask “Can I see your business plan.” Step two is to decide what business structure is best for the organization. The sole proprietorship, the partnership, the corporation, and the LLC/LLP are the four basic practices in which for-profit businesses can be organized. Practices have associated advantages, disadvantages, and tax consequences. A sole proprietorship is the most stress-free and low-cost business stricter of the three. The business owner has total control over their business as a sole proprietorship; this partnership is usually not a married couple. The advantage it is easy to start up and the disadvantage is the owners are held legally responsible.

Partners invest funds and expert knowledge as well as other needed skills, and take on the risk of failure. A partner will also share in the responsibilities and...

References: Entrepreneur. (2013). Business Structure Basics. Retrieved from http://www.entrepreneur.com/article/75118#
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