Question

Prep Work

Once you have a good feel for the different types of business structures, you should be able to narrow the choice for your specific business idea down to a couple. Think about the different structures and your own situation. See if you can narrow down your thoughts to the one best for you. For example, sole proprietorship or partnership--a sole proprietorship has the most control and it's really easy to make a decision but a partnership has a team counting on each other and the partners will have a big personal stake...but partners who are family or friends sometimes hurt their relationship when business decisions are not unanimous or the business has challenges...and so on.

Prompt

After considering the pros and cons of the various business structures, please post on which one you think best works for you and why. Also post on concerns you have about the model.

In your reply to others, help ask questions to refine their solution. Are they missing opportunities? Are there solutions you see to problems they express concern about?

This is our opportunity to help each of us get off to a great start--one that will set the foundation for the success of our business.

Please recognize we don't all want or need the same business structure model. Be respectful of each other as you go back and forth with ideas.

I would like a sole proprietorship with my own soul food restaurant

Answer 1

If you choose sole proprietorship it is the better of the partnership . As this business requires a passion to serve people the best food. The problems with this model could be :

• The business if it runs into losses the loss will not limit to the business it can cause you harm in your pockets. Instead of going for sole proprietorship a LLP can help as the losses can be retricted to the business itslef.
• Sole proprietorship posses a concern when the propreitor is not well . This might raise question on continuity of the business in case of dead of thesole proprietor.
• The expansion plans will be restricted as the capital required and the manpower and efforts will be retricted.
• A single mind of the proprietor can only tthink in one direction but with others in place the situation can be tackled with various ideas.