Powerpoint Presentation

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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