Entrepreneur

Entrepreneur

A person who assumes the risk to start a business with the idea of making a profit.

Entrepreneurial Characteristics

Persistent Creative Responsible Inquisitive Goal-Oriented Independent

Self-Demanding Self-Confident Risk-Taking Restless Action-Oriented Enthusiastic

Entrepreneurial Skills Communication

Writing Speaking Listening

Human Relation Math

Problem Solving Decision Making Technical Basic Business

InterestsChoose a field that interests you and will provide you with an experience you will enjoy!

Risks of Owning a Business Working long hours Having an uncertain income Being fully responsible Risking one’s investment

Benefits of Owning a BusinessBeing your own bossDoing something you enjoyHaving the opportunity to be

creativeFreedom to set your own scheduleControlling your salaryContributing to the community

CreativityYou must think creatively about every aspect of your business!

Business Types

Sole ProprietorOwned and operated by

one personEasy to createReceives all profits, incurs

any losses, and is liable for the debts of business

Sole ProprietorAdvantages

Easy and inexpensive to create

Owner receives all profits

Least regulated form of ownership

Business pays no taxes. Owner pays a personal income tax, which is a lower rate.

Disadvantages Unlimited liability Full responsibility

for all debts Owners personal

assets are at risk May have

insufficient skills Upon death, the

business dissolves

PartnershipA business with two or

more ownersPartners do not have to

share a business equally

Partnership Agreement

Partnership

Advantages

Inexpensive and easy to create

Share ideas, abilities, and financial obligations

Owners pay taxes as personal income

Disadvantages

Difficulty in dissolving partnership

Personality conflicts Partners are held

liable for each other’s actions

Corporation

Registered by the state and operates apart from its owners

Lives on after the owners die or have sold interest

Ownership is represented by shares of stock, public or private

CorporationAdvantages

Separate legal entities from owners

Perpetual Existence Shareholder’s

liability is limited to amount invested

Disadvantages

Expensive to start and requires a lot of legal paperwork - Must hire attorneys

Owners are seemingly double-taxed Business profits are

taxed at a higher rate Owner’s income from

the business is taxed as personal income

CorporationsC-Corporation

Most common for large businesses

Shareholders are owners of corp.

Required to have an elected Board of Directors to make decisions

Employee benefits

S Corporation

Owners of smaller companies - liability protection of a corp., but avoid double tax

Profits are taxed once at shareholder’s personal tax rate

Shareholders liable to amount invested

Founders generally hold majority of stock

Limited Liability CompanyLimited liability like a

corporation, but more flexiblePass-through income taxation

like a partnership or sole proprietorship

Great for companies with a single owner

Referenceshttp://www.schools.utah.gov/

cte/marketing_resources_entrepreneurship.html