Today i will be speaking about the business i have discovered The business name i have chosen is tapcomp. John has established his own mobile computer and software business. It all started 18 years ago and it started from scratch. It began because he was an employee of a similar business and decided to start his own company, taking control of all decisions related to the business key functions, management, operation, human resource management and accounting. John is an Sole trader with an unincorporated entity and unlimited liability.
Like any other sole trader, John was faced with many advantages and disadvantages due to his choice of legal structure. Advantages: * Gain complete control of your business including any decisions made: There is no division between business assets or personal assets, which includes your share of any assets jointly owned with another person. Your liability is unlimited which means that personal assets can be used to pay tax Clients">pay business debts. * Simple set up and operation. * Fewer reporting requirements. You are not considered an employee of your own business and are free of any obligation to pay payroll tax, superannuation contributions or workers’ compensation on income your draw from the business. * Relatively easy to change your legal structure if the business grows. * Ability to take time off whenever you want Disadvantages: * Unlimited liability which means all your personal assets could be at risk if something goes wrong, landing your business in debt. *
The Essay on Assets, liabilities, equity
Accounting, per se, is based on five types of accounts namely: assets, liabilities, equity, income and expense. These account types belong either of the Balance sheet accounts or Income and Expense accounts. Assets, liabiliites, and equity fall under the balance sheet account and the rest goes to the income and expense accoutnts. Definining each, asset is composed of a group of things that an ...
Little opportunity for tax planning – you can’t split business profits or losses made with family members and you are personally liable to pay tax on all the income derived. No one to look after the business if you’re very ill etc. To build on his customer base, he promoted the business simply by appearing alongside the buildings of popular companies within the same industry, handing out business cards and just talking to random people. And he advertised the business through yellow pages and pink pages. As john grew his business to his standards he decided to rent a store in the heart of the city in an shopping centre to be as convenient as he can for his customer base clients.
