Business Types And Advantages Within The Music Industry

In this section I will be assessing different business types and the advantages and disadvantages within the music industry. the business types I will be researching are sole proprietorship, partnership, corporations and limited liability company. Sole Proprietorship Most small businesses tend to start out as sole proprietorships. These companies are owned by one person. This individual normally has the day-to-day responsibility for running the business. Sole proprietors own all the assets of the business and all the profits generated by it. They are also completely responsibility for any of its liabilities and debts. In the eyes of the law, you and the business are one entity. The advantages of a sole†¦show more content†¦If looking for someone to invest money or be part of your business you may struggle to find people with vast knowledge of the industry you are in as it may feel like to much of a risk for them. Employee benefits such as owner’s medical insurance premiums are not directly deductible from business in (only partially as an adjustment to income). If you earn  £20.000 in one year 10,000 of this is taxable (depending on current pre tax earnings) Conclusion In conclusion if you are confident in your business and you don t mind the risks the sole proprietorship is by far the easiest way to set up a business. I know a few people that do this and they have said that it is best to always run within their means, which in a way is a good way of doing things. However it does not leave room for you to make your business grow Partnership A partnership, Consists of two or more people who share the ownership of a single business. Like in a proprietorship, the law does not distinguish between the business and its owners. The Partners should have a prearranged agreement of how decisions will be made for their company, the profits will be shared, how disputes will be resolved, how new partners will be brought into the partnership, how partners can be bought out, or what steps will be taken to dissolve the partnership when needed. Although it sounds silly thinking about dissolving the company before its started, many companies break up in times of