Types of Businesses

In: Business and Management

Submitted By ii7GuyverJin
Words 2412
Pages 10
Sole proprietorship
Sole proprietorship concern (also known as a sole trader/owner) is the most common and most favored option for individuals who want to establish a small business in Pakistan, or want to start a home-based business. This form of business is used by majority of start-ups on Pakistan, and it is the simplest way of giving corporate face to a small business
Following are the main steps to start a sole proprietorship business:
· Finalize a business name.
· Print basic business stationary i.e. letterheads, visiting cards etc.
· Prepare firm's name stamp (a common rubber stamp will do).
· Open a bank account in the name of sole proprietor business. The bank manager will require a request letter on business letterhead with sole proprietor’s signature and stamp.
· Get bank statement of the newly opened bank account.
· Apply for National Tax Number (NTN) certificate. Bank account statement and a copy of sole proprietor’s computerized national identity card will be required along with application for NTN. If sole proprietor already has NTN there is no need to get a new one as the existing NTN can be used for business documentation.
There is no requirement to register a sole proprietorship in Pakistan. Any business can be conducted through a sole proprietorship unless the law requires a certain business to be carried out only by an association of persons, for example a partnership firm or a limited liability company. Sole proprietorships are not complex business structures, and are therefore quite easy and quick to establish.

The owner of a sole proprietor business (referred as ‘sole proprietor’ or ‘proprietor’) can pay taxes through his/her personal tax returns. Unlike a limited liability company, the sole proprietor will always be personally liable for affairs of the business, for example to the creditors of the…...

Similar Documents

Types of Businesses

...Limited Liability Company (LLC) is a legal form that provides liability for the company's owners without requiring incorporation. LLCs have become the form of choice for many small companies. The advantages include personal liability protection for all owners and pass through profits without corporate taxes. Another benefit, is the profits can be distributed unequally. A 60% shareholder can take only 10% of the profits. This allows more flexibility for tax planning and for rewarding owners who bear more management responsibilities. The disadvantages include LLC laws (which vary by state); you are likely limited in the number of owners (investors) you can have, and some states do not permit international investors. An "S" Corporation is a type of corporation that provides personal liability but permits pass through taxation. The advantage is this used to be the most popular choice for small companies, and lawyers and accountants are very familiar with laws relating to S corporations. However, the disadvantages are you cannot distribute profits unevenly as you can with LLCs, and you pay state corporate fees. A "C" Corporation is a corporate form that allows for the most investors and significant liability protection. This form of business is companies that are going to be publicly traded. The advantage is there is no limit to the number of people who can own stock. The disadvantage is double taxation.”1 With that stated, Betty has a few decisions to make. She has a......

Words: 1063 - Pages: 5


...The 21st century has seen the rise of mobile applications through the technology of smart phones .The mobile apps market is very elastic and continues to expand each and every day. The mobile market has a wide variety of applications that no matter what type of interests you may have, there is something for you. Outlined further in this report will outline the demand for these apps, trend analysis, current market status, success stories and lastly the end users. It was in June of 2008 when Apple Inc released its 3G Apple Iphone which featured support for third party applications. Then only a short month later the Apple app store was created. This took consumers by storm and in the first weekend over 10 million apps were downloaded. Since its release the app store has continued to expand with more apps and better quality apps that now range from E-books to a very humorous fart app. Shortly after Apple had seen rapid success with its app store, other leading Telephone providers like blackberry, Nokia and Android soon released a similar app store for their users. The evolution of mobile apps seems to be creating applications in which ease day to day living through our smart phones. For example in the Apple app store, there are apps which allow you to receive newspapers like the New York Times, or the Globe and Mail directly to your mobile device. There are also apps which act as a PDF creator, it allows for the consumer to take pictures of multiple documents, upload them......

Words: 348 - Pages: 2

Forms of Businesses

...business, your entity selection can change from a sole proprietorship to corporation within several years, it all depends on how well the business has progressed. For individuals who wish to start their own business, they should seek legal advice to determine which entity will suit their business needs. Sole Proprietorship This is a business that is owned by one person, it is simple because one single person runs the business. Normally, this type of entity are for service related such as doctors and accountants, but sometimes people who make small dolls or services such as yard detail. The type of business, the owner keeps are the profits, you need only a small percentage of money to start up and not complex to setup are some of the advantages. The disadvantages is the business debts can be recovered from the owner’s assets, it is very difficult to transfer because the owner has to sale the whole business and constraints on growing the business because of the limited resources of the owner. Sole Proprietorship businesses: doctor’s office, account services (tax season), photographer and mobile food truck vendors. Partnership/Limited Liability Partnership (LLP) Two or more people go into business together, with a mutual understanding of sharing the profits. Somewhat like the sole proprietorship entity, with two classifications: Limited Liability Partnership and General Partnership. In the General Partnership, everyone that are partners share in the profit......

Words: 936 - Pages: 4


...or 5.5. 2 1 42 2 (b) The least common denominator for 0.01, 0.42, and 0.2 1 or 100, 100, and 10 2 is 100. Multiply each side by 100. To do this move the decimal point 2 places to the right. 0.01x - 0.42 = - 0.2 x 100(0.01x - 0.42) = 100( - 0.2 x) 100(0.01x) - 100(0.42) = 100( - 0.2 x) x - 42 = - 20 x x - 42 20 x 42 = - 20 x 21x = 42 x = 2 The solution is 2. Now Try Exercises 49, 51 Given equation Multiply each side by 100. Distributive property Simplify. 20 x 42 Add 20 x and 42. Combine like terms. Divide each side by 21. Equations with No Solutions or Infinitely Many Solutions Some equations that appear to be linear are not because when they are written in the form ax + b = 0 the value of a is 0 and no x-term appears. This type of equation can have no solutions or infinitely many solutions. An example of an equation that has no solutions is x = x + 1 because a number x cannot equal itself plus 1. If we attempt to solve this equation by subtracting x from each side, we obtain the equation 0 = 1, which has no x-term and is always false. An equation that is always false has no solutions. An example of an equation with infinitely many solutions is 5x = 2x + 3x, because the equation simplifies to ISBN 1-256-49082-2 5x = 5x, which is true for any real number x. If 5x is subtracted from each side the result is 0 = 0, which has no x-term and is always true. When an equation containing a variable is always true, it has infinitely many solutions. Beginning and......

Words: 32187 - Pages: 129

Describe the Type of Business, Purpose and Ownership of Two Contrasting Businesses

...1) Describe the type of business, purpose and ownership of two contrasting organizations Sainsbury’s Sainsbury’s is the UK’s most long standing major food retailer, having opened its first shop in 1869. Sainsbury’s brand is built around providing fresh and tasty food for its customers. It differentiates itself from other supermarkets by offering a broad range of products at a great price, a strong ethical approach to business and continuous leadership. The size of Sainsbury’s consists of 504 supermarkets and 309 convenience stores. A large Sainsbury’s produces over 30,000 products. Sainsbury’s is currently in the tertiary and secondary sector, this is because Sainsbury’s provides services (through banks), sell goods and own their own farm. Their purpose is to exceed customer’s expectations for fresh and healthy food, making their lives easier every day. Sainsbury’s ownership is the public limited sector because it sells its goods on the stock exchange. Sainsbury’s key stakeholders are: Customers: They want a company to produce products that meet or exceed their needs, they would like to see improvements Employees: They want the company to provide them a source of revenue; they seek security for employment, promotional opportunities and good rates of reward Suppliers: Want stable instructions and punctual payments. They want to be valued by the company they work for. RSPCA RSPCA stands for Royal Society of Prevention of Cruelty to Animals. The vision of RSPCA is...

Words: 525 - Pages: 3

Describe the Types of Business Purpose and Ownership of Two Contrasting Businesses

...P1 I will be relating the type of business, purpose and ownership of the two contrasting organisations. The two organisations that I will be choosing are: Oxfam and Sainsbury’s. Sainsbury’s Purpose/aims of Sainsbury’s The purpose of Sainsbury’s is that they are trying to make as much profit as possible, as they are competing with other supermarkets and be the number one UK’s supermarket, and this will allow them to expand on their business. Sainsbury’s have a long term goal to deliver their products and keep their customers happy. One of their objectives is to make life easier for their customers by offering products with good quality and service with a fair price. This also makes the customers happy and makes them want to shop there more. This helps Sainsbury’s to increase their profit rate. The fact that they have a clear, long-term strategy shows that they are informing future developments, and that they are thinking deeply and clearly on how to adapt, develop and grow quickly before they get left behind in the competition with competing against other businesses. Business activity Sainsbury’s is a national company as it has stores throughout the UK, and this shows that they are making profit day in a day out. Improvement within the business Sainsbury’s are doing many things to improve their business of their five values, so that they are improving the business and still staying in the market. By staying committed to their values, they are making their......

Words: 718 - Pages: 3

Fin 571 - Three Types of Businesses

...Three Main Business Structures Graling Carmichael FIN/571 Operations Management November 3, 2014 Danica Djordjevich Three Main Business Structures There are normally seven types of business used in the United States; sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporation. For the purpose of this paper, I will concentrate on the three main business structures of sole proprietorship, partnerships and corporations and explain how each might or might not be advantageous. Sole Proprietorship A sole proprietorship is a business owned by one person. About three-fourths of the businesses in the US function with this business structure (Bates, Kidwell, & Parrino, 2012). This business structure usually consists of a owner and a small number of employees. One of the main advantages to this structure is it is the simplest type of business to start, and it is the least regulated by the government. Another benefit is that a sole proprietor keeps all the profits and has the authority to make all the decisions. And lastly, profits are subjected to lower income taxes compared to those businesses structured as corporations. Sole proprietorships have some disadvantages as well. The sole proprietor’s access to the capital is limited to personal funds plus any loans he or she can obtain. The sole proprietor is legally responsible for the business’s contracts. And, the sole proprietor is......

Words: 811 - Pages: 4

Types of Businesses

...enough customers to whom its output can be sold on a consistent basis in order to make a profit. The purpose of business? The purpose of a business is to offer value (through products and/or services) to customers, who pay for the value with cash or equivalents. The aim of businesses is to make profit and to grow. There are 3 business sectors in the UK, these are Private, Public and Voluntary sectors. Types of businesses in UK? The private sector has different categories which are sole traders, partnerships, companies and franchises. A sole trader is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. Being a sole trader is considered the simplest way to run a business as it does not involve paying any registration fees. You must register as self-employed, keeping records and accounts is straightforward, and you get to keep all the profits. The difference is that you are personally liable for any debts that your business runs up, which can make this a risky option for businesses that need a lot of investment. Examples of sole traders are plumbers, electricians etc. These can even be small web based businesses or home based business. Sources of Advantages *The firms are usually small, and easy to set up. *Generally, only a small amount of capital needs to be invested, which reduces the initial start-up cost. *The wage bill will usually be low, because there a few or......

Words: 1348 - Pages: 6

Businesses for Sale

...their own multibillionaire empires. This does not mean, however, that small microenterprises do not have the chance to hit the financial jackpot. If you want to start your own business, the fear of not knowing where to start is a given. But why worry when you can continue a business someone has already started? Here are a few businesses for sale where you can put your bet on. Keep reading, and discover which business lines are perfect for you. Food Industry If there is a business that would never go out of commerce, then food would have to be the answer. The food industry is one of the easiest entry-level businesses. You don’t need to be a five-star chef with culinary arts degree to become successful. By buying an existing food business, you can get tips and advices from the current owner, and you are already right on track. Because they have pertinent experience on the field you’re entering, you can be assured to get the right supervision from them. Another suggestion may be to add more product lines from the existing business. If the business you are buying, for example, sells hamburgers, then you can move on by adding promotional and unique types of burgers that your customers would surely enjoy. Automobile Detailing Over the years, the number of people driving their own cars has significantly increased. Unsurprisingly, with this increase is the rise in the demand for automobile customization and general repairs. This industry, however, is a technical......

Words: 751 - Pages: 4

Types of Businesses

...a1 PART A SOLE PROPRIETORSHIP A sole proprietor operations are often called mom and pop businesses. They are usually run by a single person, the owner, or run by a very small staff. • Liability: The owner is liable for all debts accrued by the business. This means creditors are entitled to recoup and debts through business and personal assets. • Income taxes: A sole proprietor files their business taxes along with their personal taxes. Typically when filing taxes the form that is files is the 1040. The owner would just need to file a Schedule C form along with their 1040. • Longevity or continuity of the organization: In the event that the owner dies normally the business dies also. Unless the owner has a qualified heir to pass the business to it will cease to exist. 2 • Control: As stated above, typically sole proprietorships are completely autonomous. The owner has total control over day to day operations. He also has to final word on all decisions associated with the business. • Profit retention: The owner keeps 100% profits gained. • Expansion / Location: To expand or relocate business the owner only needs to make sure they obtain any licensing or permits required by local or state law. Also, if operating in a name other than their own, they must make sure the business name is legally available for use. GENERAL PARTNERSHIP A general partnership is where there are two or more that own a business with equal powers. To establish a......

Words: 1588 - Pages: 7

P1 Describe the Type of Business, Purpose and Ownership of Two Contrasting Businesses.

...Business purpose and ownership To: The Chief Executives of Nike and Trafford Council From: Tom. Jackson, Management Consultant Date: 21st October As a consultant management you (Nike/Trafford Council) have given me the task of issuing a report about your company and how they are set up. Within this report I shall be reviewing both business set ups. Nike is a Global business as the business is known all over the world with Nike clothing and accessories being sold world wide. In terms of the type of business that Nike operates in they are a Public business as anyone can invest into Nike on the New York stock exchange. Nike belong to the secondary industrial sector as Nike’s largest aspect of their business is manufacturing their goods such as shoe wear and general sports equipment. Trafford Council is a regional business as it only serves the people of the Trafford Metropolitan Borough of Greater Manchester. Trafford Council as a business is not for profit as it serves to fund trafford residents with local needed necessities such as: local schools, parks, street lights etc. Trafford Council belongs to the tertiary sector of business as Trafford Council is a service thus it is within the service sector which goes under the tertiary sector. As a globally recognised organisation Nike’s main business purpose is for profit maximisation, by helping to meet profit maximisation Nike have vast global advertising to help them sell as many Nike accessories as......

Words: 416 - Pages: 2

Cases Where Moving and Storage Companies Were Sued for Some Type of Fraud Against the Consumer and/or Against Other Businesses

...PART I – 5 Cases where moving and storage companies were sued for some type of fraud against the Consumer and/or against other Businesses These group of cases represent consumers in lawsuits against moving companies and/or arbitration. Lawsuits against moving companies may include damages to property, breach of contract, tariff or regulatory violations, and hostage loads. * The Attorney General's Office filed a lawsuit against Moving Max in July 2014, alleging they "engaged in a predatory bait and switch scheme," billed customers for "bogus charges," and then "threatened to drive off and retain the customers personal belongings unless and until payment was made by cash or money order." Under the terms of the Final Consent Judgment (entered February 13, 2015), that concluded a lawsuit filed in State Superior Court in Bergen County, the owner of Moving Max, Inc., a moving and storage company based in Fair Lawn, and the owner’s father, are permanently barred from owning or working in such businesses in New Jersey. In addition, as part of the settlement, 18 consumers who complained that their possessions were held until they paid substantially higher moving costs than agreed to, will be reimbursed for their losses. Case Cite: John J. Hoffman v. Moving Max, Inc., et al. Bergen County New Jersey Case No.: BER-C-203-14 http://nj.gov/oag/newsreleases15/Moving-Max-Oziel.pdf * Shurgard Storage Centers, Inc. (plaintiff) and Safeguard Self Storage, Inc.......

Words: 982 - Pages: 4

Describe the Type of Business, Purpose and Ownership of Two Contrasting Businesses

...Unit 1: The business environment Help sheet 1.1.1 P1 Describe the type of business, purpose and ownership of two contrasting businesses To achieve P1, you must complete Task sheet 1.1.1, a case study, as well as Worksheets 1.1.1 to 1.1.4. You must also write a detailed presentation about two organisations. • You must ensure that the two organisations chosen are very different. For example, a large plc, such as Tesco, and a charity, such as Save the Children. This will make it easier to compare the environments. • It is a good idea to choose organisations that you are interested in, but that also have a large amount of information available. Therefore, spend some time researching a few organisations that might be of interest to see which one will make this task the easiest. • The same organisations will be used for tasks other than P1 so look ahead in the assignment to make sure the information you will need is available. • Once you have chosen your organisations, you need to research them in order to be able to identify the type of businesses they are. You must identify which scale they operate at and what sector they operate in. Make sure you give evidence and reasoning to back up your decisions. • The purpose and ownership of a business can often be seen on its website. However, you may find a phone interview very useful for collecting all the information you need. This can then be used as evidence. Remember to reference your work when necessary. ...

Words: 2464 - Pages: 10


...Colgate has focused on four types of core businesses such as Oral Care, Personal Care, Home Care and Pet Nutrition today. Now Colgate does business to 222 countries and territories worldwide. Colgate also has ranked as the India’s No 1 most trusted brand across the categories for four consecutive years from 2003 to 2007. Colgate has been positioned in the customer’s mind which they are the number one brand that recommended by dentist and hygeniest. Target market segment and Consumer Analysis Market segmentation is a division of a market by using a strategy to obtain a major portion of sales to a subgroup in a category other than more limited shares of purchases by all category users. Market segmentation is also to identify the segment within the market and population then evaluate the potential of each segment follow by selecting the segment then targeting at the specific segment and groups of people so that they can apply the marketing mix (product, promotion, place and price) into each of the specific segment selected. The first target segment on the consumer for Colgate is based on the demographic segmentation which is the factor of ages. There are two categories of ages that we targeted at are kids who ages 3-12 years old and the teenagers to the old folks who ages more than 13 years old. Kids who are still young and they most probably would not care about the actual function of the toothpaste and so we have come out with different types of taste of fruits so......

Words: 2923 - Pages: 12

Types of Businesses

...Owning and operating a business, for some, is a dream come true, and something that takes years of careful planning before it can be brought to fruition. However, deciding which type of business format to enter into is just as important as coming up with a solid business plan initially. Thorough consideration should be given to all business types; even discussing the many options with an expert is highly advisable. In the end one has to make the final decision to become a sole proprietorship, an LLP, LLC, an S corporation, so on and so forth… One of the simplest forms of running a business is doing it as a sole proprietor. A photographer, for example, doesn’t need much capital to start up this venture, and would have the benefit of being his or her own boss, as well as reaping all of the profits made from selling his pictures. Plus, this person would not have to pay taxes at a business level, and would only have to file a 1040 on the personal income tax form. One of the only downsides to this type of business is the photographer must be prepared to be solely liable for any damages or torts brought forth upon them. Additionally, a sole proprietorship has a limited life, because when the business owner dies, the business generally dies along with it (Garrison, 2012). Another very common form of doing business in the United States is by establishing it as a partnership. This can be as simple as two friends joining together to form a catering company, or as complex as......

Words: 1074 - Pages: 5