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The goal of a business plan is to present the business owner’s personality, goals and dreams. There is no right way to create a business plan. However, there are certain elements that should be included in order for the business plan to be successful. The following components are key to a successful business plan:
• The Preview
• The Description
• The Marketing Plan
• The Financial Plan
• The Management Plan
• The Summary
Business structures
Before you can go into business, you must select a legal structure. The type of structure that you choose can affect your liabilities, taxes, profits and much more. When considering a business structure, you have three basic choices- sole proprietorship, partnership and corporation – each with it’s own advantages and disadvantages.
Business Structure Advantages Disadvantages
Sole Proprietorship Full Profits Personal liability
Partnership Easy to form Unlimited liability to all partners
Corporation Corporation protects you from personal liability Higher taxes
Subchapter S Corporation S corporation avoids double taxation penalty Limited to companies with fewer than 75 shareholders.
Limited liability Corporation Protects the partners against personal liability but passes tax income Guidelines are different in each state.
Now that we have described in brief detail the different business ...