Why is it important for an entrepreneur or owner to determine the legal form of business ownership?

Part 1

Instruction: After watching the following video, why is it important for an entrepreneur or owner to determine the legal form of business ownership? When you chose the legal form of your business, what kind of tax considerations did you have to make?

https://youtu.be/1H6qE7eyLWk

Part 2-Based on the business plan from last week.

Instruction: Why did you select the business form that you did for your organization? Explain a little about your business concept. Did you consider taxes and income taxation when you selected your business form? Did you think about life events such as divorce or death of a partner? Did you think about your liability to your customers? Did you think about how you will sell or get capital investment? What effect did your research on taxes have on you and your business plans?

Part 3-Based on the business plan from last week. (OHIO)

Assignment :For this part of the assignment, you will write 1-2 pages on the taxes that your new organization will need to consider and/or pay. For this section, visit your state’s Secretary of State website and your state’s Department of Revenue website. Also visit the www.irs.gov website. You will need to address licensing fees, income taxes, unemployment taxes, sales taxes, employer withholding taxes, social security withholding, self-employment tax, corporate or business taxes, etc. Be sure that you address the business, the owners, and the employees. This is not directly a part of the business plan, but every entrepreneur needs to know about their taxes, licenses, and fees. Submit this part of the assignment separately from the business plan.