Economics LT 2
Have you ever thought about starting your own restaurant? When deciding this you need to take into consideration, what type of ownership structure is suitable for your situation. There are different types of ownership structures, Sole Proprietorship, Partnership, Corporation and Franchises. In my personal opinion Sole Proprietorship is the best ownership structure for various reasons.
In a Sole Proprietor the owner receives all the profit;maximum profit. The owner doesn't need to split up the profit like in a partnership structure. The profit the restaurant makes does not have to be distributed to any stockholders. When the owner collects the profit he can decide where the profit can be invested. The profit can either be invested right back into the restaurant for improvements or for personal use.
In this structure the owner makes all the decisions that go on in the restaurant. The owner doesn't need to discuss with another partner on which decision is the best. This can avoid problems and discussions in the future. The owner is always aware of everything that happens in the restaurant. This is helpful to the owner because if they had a partner in some occasions the partner can hide problems or bills the restaurant has. If the owner decides to make an adjustment to the restaurant it doesn't have to go through a big process to be confirmed like an a corporation.
The key reason to open a restaurant in a sole proprietorship structure, It's the most simple to start. You don't need to go through any legal fees to open up a restaurant. Reporting taxes is easier than any other ownership structure.There is no legal distinction between the owner and the business.
Has it came to mind, opening your own restaurant? Deciding your Owner structure status for your restaurant is a key start. Sole Proprietorship, Partnership, Corporation and Franchise are Owner structures to take in consideration. I believe Sole proprietorship is the best ownership for the unique abilities that the other structures do not have.
In a Sole Proprietor the owner receives all the profit;maximum profit. The owner doesn't need to split up the profit like in a partnership structure. The profit the restaurant makes does not have to be distributed to any stockholders. When the owner collects the profit he can decide where the profit can be invested. The profit can either be invested right back into the restaurant for improvements or for personal use.
In this structure the owner makes all the decisions that go on in the restaurant. The owner doesn't need to discuss with another partner on which decision is the best. This can avoid problems and discussions in the future. The owner is always aware of everything that happens in the restaurant. This is helpful to the owner because if they had a partner in some occasions the partner can hide problems or bills the restaurant has. If the owner decides to make an adjustment to the restaurant it doesn't have to go through a big process to be confirmed like an a corporation.
The key reason to open a restaurant in a sole proprietorship structure, It's the most simple to start. You don't need to go through any legal fees to open up a restaurant. Reporting taxes is easier than any other ownership structure.There is no legal distinction between the owner and the business.
Has it came to mind, opening your own restaurant? Deciding your Owner structure status for your restaurant is a key start. Sole Proprietorship, Partnership, Corporation and Franchise are Owner structures to take in consideration. I believe Sole proprietorship is the best ownership for the unique abilities that the other structures do not have.