Research Topic One of the first decisions an individual goin

Research Topic:

One of the first decisions an individual going into a business must make is which business entity is best. Based on the type of business that interests you, research the various entity types and decide on the best choice for your business. Your paper should include facts regarding the type of entity selected but also comparisons with the other types that you avoided.

Such as: A sole proprietorship is the easiest type business to form. As compared to a partnership which should involve having a written agreement although one is not a requirement. Or as compared to a corporation which requires articles of incorporation and legal requirements with the state. With a sole proprietorship, there is only one owner. All assets involved in the business would be owned by the proprietor.

Your paper should include:

Introduction (stating the business type and best entity for that business)

Ease of formation

Operation

Taxation

Tax Forms

Liability

Expansion

Ease of transfer

Ease of sale

Termination

Dissolution

Summary

Objectives. The objectives of this assignment are (1) to research tax-related topics online and/or in print, and (2) to enhance the written and communication skills of the student.

Solution

Introduction : I would like to start the business that is sole proprietorship. Proprietorship is very easy to start , full control , full decision making power etc . I am starting the business of supplying the Automobile components to MNC Automobile companies. These days this business is growing. In todays business scenarios there is good prospects for Automobile market. People are preferring variety of car. If we get good order from major Automobile producer then this is the best business.

Ease of formation: At the start being a sole proprietorship , I will handle all the processes. There needs to be registration certificate on the firm name. Following are the important document.

Being proprietorship we can start business easily & immediately.

Operation : Operations involves all the manufacturing of all the components .

Components are Gear Box , Breaks , Peddles , Liver , Shifter etc

For this required machines are computerized & semi automatic machines.

Taxation & Tax Forms : Taxations required are Import duty , Value added tax , Excise Tax , Services Tax , Educational Cess etc. The knowledge of tax is very important.   Appoint a separate consultant for taxations .

Liability : Major liability is of Bank. I plan to mortgage the purchased machineries & my plant & building for collateral security .

Expansion : Expansion planned 2 years after the starting firm. In this expansion the objective is to establish the full automated line of machines & complete the work of all the MNC companies.

Ease of transfer : Ease of transfer is easy because of sole proprietorship.

Ease of sale : Being contracted to MNC companies directly , parts are sold to them only . ther will not be contact with the customer directly . SO once contract is finalized the selling process is not critical .

Termination & Dissolution : Company can immediately dissolved being proprietorship , because of single decision power. Only if all the liabilities are clear & contracts are completed.

Summary : This unit is planned for manufacturing of Automobile parts for MNC companies . This is solely proprietorship unit. Easy to enter & easy to exit. Liability is bank loan & company contract.