Order from us for quality, customized work in due time of your choice.
The United States is pursuing an active government policy to regulate and stimulate entrepreneurship. In 2003, a new presidential program to support small businesses was adopted, designed to give additional impetus to developing this vital segment of the civil and military economy (Americas Small Business Development Center, 2020). Many small businesses operate in the country, generating a significant part of the USA GDP, creating innovation, and providing employees with new jobs.
Anyone can open their own company in the United States, even without being an American citizen and without a residence permit. There are several of the most common forms of doing business: sole proprietorship, partnerships, corporations, limited liability companies. A sole proprietor is an individual who does not own an unincorporated enterprise. Private business is ideal for the service industry. Lawyers, accountants, private doctors, hairdressers, nail professionals, and other specialties of the service sector most often choose this type of business organization. The US government encourages citizens to start their own business and provide an utterly loyal environment.
This form of doing business has its advantages over others. Since a sole proprietor in the United States is not legally considered a legal entity, the tax liability is limited only to a standard personal declaration. In addition, the procedure for registering an individual entrepreneur in the United States is effortless and affordable. Some activities will require a license, as well as a permit for specific activities. However, the procedure itself is simplified as much as possible. On the website of the Licensing Department, anyone can find out if a particular type of activity is subject to licensing. Nonetheless, it should be borne in mind that the registration procedure, taxation system, etc., may differ significantly in different states. The spouses can work together as one private enterprise these are the provisions of the state laws. They cannot be classified as partners in the enterprise, which allows the firm to maintain the status of a sole entrepreneur.
As a full-fledged owner, a sole proprietor in the United States is not obliged to hold annual meetings of shareholders. He also does not need to coordinate decision-making and share the right to manage a business with someone. This imposes a rather severe responsibility, which is fully compensated by the opportunities for growth and development. A private entrepreneur solely manages his property, is responsible to them for debts and obligations (Twin, 2021). All his profits are considered personal income, which he has the right to dispose of independently.
However, in addition to these advantages, this form of business organization has its disadvantages. For example, private entrepreneurs often have difficulties in finding sources of additional funding (Twin, 2021). Since the assets of an individual entrepreneur as a market participant are inseparable from his own personal ones, it will be challenging to sell the business. The country is very competitive; therefore, to avoid financial losses, it is necessary to be able to adapt to changing market conditions.
A sole proprietorship is an exciting and effective form of an organization type. However, those wishing to open their own business may face the difficulties of choosing between one form or another. Therefore, it is essential to know what are the risks and benefits of private entrepreneurship. This essay did not fully cover the taxation and registration details, but it leaves room for further study.
References
Americas Small Business Development Center. (2020). A Brief History of Americas SBDC Network. Web.
Twin, A. (2021). Sole proprietorship. Investopedia. Web.
Order from us for quality, customized work in due time of your choice.