In order to better understand why there are so many different business entities, it is useful to have students consider a business they might want to establish for themselves and then consider which business entity would be best for their particular business purpose. This written assignment will require you to conduct some outside research and then prepare a written report for a business that you might want to create.
Instructions:
1. Come up with an idea for a business you would like to form.
2. Based on the readings for this week and your outside research, determine the type of business entity you will use (corporation, LLC, sole proprietorship, partnership, LLP, etc.). You should consider issues such as ease of formation, liability, taxation, financing, etc.
3. Select a state in which you would want to establish your business. Conduct some outside research in that state to see what you would need to do to form the business. Usually you can find information on forming a business by conducting an electronic search and using search terms similar to the following, which I would use to search the state of New Hampshire: "New Hampshire corporation form Secretary of State." You want to find information for forming various business entities, which are usually found at the Office of the Secretary of State, but depending on the business entity you select may require additional research.
4. Prepare a written report concerning your business and discuss the following topics:
a. Provide a name and purpose for the business you plan to form and indicate the state in which the business will be established. Make sure the name complies with state requirements for the particular business form you have selected.
b. Discuss the type of business entity you selected. Explain why you selected this particular type of business entity. Make sure you incorporate concepts you are learning to demonstrate that you understand why one business entity would be best for your type of business. Discuss the advantages and disadvantages, if any, for the business entity type you selected.
c. Based on your outside research, list and explain one state form that you would use to establish your business. Make sure you name the form and explain its purpose.
d. Discuss how you would terminate and dissolve your business entity.
There is no page limit for this written assignment, but you must fully discuss all topics. It is very important that you use material from this week's readings as well as your textbook to complete this assignment. Papers are expected to follow APA documentation rules. The APA style guide is widely available online, and you can access the latest edition by clicking the following link:The OWL at Purdue.