My undergraduate degree was in interior design, which I truly loved,
so I did that for a few years before finding my way to my current
company. I started as a sales assistant and quickly worked my way up
in the company - anytime I had an opportunity to learn another area
of the company, I took it. That led me to get into the accounting
department, which is where I really excelled. I found my passion in
that area and continued to work my way up until I became the head
of our accounting department. While I do love my company, I am
beginning to feel that I am meant for bigger and better things, which
is why I came back to school. I cannot wait to continue my education
and gain more knowledge in a field that I am passionate about, I feel
this will open doors for me to grow further in my career.
When starting a business, choosing the right entity for your business
is very important. Of the three entities, a sole proprietorship is the
easiest, as it consists of one sole owner who has complete control
over the business. When looking to start with a partnership, there are
two or more owners that will be involved. Each of these types of
entities do have similarities when it comes to their tax advantages
and disadvantages. For instance, with each of these entities, the
business’s income and expenses are taxed on the owner(s) individual
tax returns. However, these do come with some disadvantages. With
each of these entities, the owner(s) do not have any personal liability
protection. The owner(s) are also not able to deduct their salary.
Additionally, the owner(s) would be subject to self-employment taxes
on the business’s income.
A corporation is quite different from a sole proprietorship or a
partnership, it is a legally separate entity “owned by one or more
shareholders who might be individuals or entities” (Chron, 2021). A
corporation does offer its shareholders limited liability protection
from any of the business’s debts or actions. However, it does require
a lot of money to start a corporation, they must pay things like startup
taxes and operation costs. Corporations are also highly regulated by
state, federal, and local agencies, which does require more paperwork.
If I were opening a chain of gas stations with three other investors,
then a sole proprietorship can be automatically ruled out since I
would not be the only owner. In this situation, I feel that a
corporation would be the best choice for our business. This will allow
us to have personal liability protection as shareholders and is the
easiest when it comes to tax reporting. It will also allow us to take
reasonable salaries and pass-through net profits.
Chron.com. (2021, October 18). The pros & cons of a sole
proprietorship & corporation. Chron.com. Retrieved February 2,
2023, from https://smallbusiness.chron.com/pros-cons-sole-
proprietorship-corporation-55884.html
