Naming and Starting a Business

Running Head: Naming a Business
Naming and Starting a Business
Name of the Student:
Name of the University:
Author’s Note

DEVELOPING BUSINESS1
Step 1
There happens to be many legal forms to structure a new business, such as partnerships, S
Corporations and regular corporations. Despite the fact that Sole Proprietorship is the simplest
and most famous form of business startup, it may fail to provide entrepreneurs with the legal and
tax benefits unlike LLC, as this type of business ownership combines several features of
corporation and partnership structures. The main advantage is that the personal liability is
protected for the owner of the company (Abdulsaleh & Worthington, 2013). For instance, a
customer could sue the LLC, but not the owners personally. It protects their personal assets from
any lawsuit which may be a result of the business. In the similar manner, if a patron sues the
coffeehouse, claiming that the food has made him ill or he slipped and fell on her flooring and
many number of happenings, an LLC can protect their personal assets from any harm or risk.
In a sole proprietorship a person is liable for the debits that is to be carried by the
business. The creditor can take the responsibility of sole proprietor’s home, car and other
personal property to satisfy the debts. LLC is a hybrid of partnership and corporate that forms
and allows the liability protection for a corporate with tax advantage of the partnership (Robb &
Robinson, 2014). The personal information is available when a person owns sole proprietorship
and is also available to make the decision since the business is not a separate legal entity.
Shaina’s business credit will be taken more into consideration and can be shown as an
alternative. The coffeehouse is an LLC which will have its own credit rating. With an advantage
of having its own credit score the coffeehouse can be expanded in near future with new
equipment, location or any number of business with adequate amount of finance.

DEVELOPING BUSINESS2