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Starting businesses is significant to entrepreneurs, though it involves processes associated with challenges and high level of commitment. Therefore, new businesses at the early stage require perseverance, hard work, and risking scarce resources (Hisrich, Peters & Dean, 2010).
New businesses require permits from local authority, whereby owners are issued licenses that allow them commence business operations. However, issuances of licenses depend on the form of business that an entrepreneur intends to operate, and restrictions in areas where businesses will be operating. In addition, there are different forms of taxes imposed on businesses by government. In this case, businesses are required to make regular payments in form of taxes; thus, entrepreneurs should consult an attorney for appropriate guidelines at state level. However, at local level, entrepreneurs need to consult the local authority to acquire the guidelines regarding tax compliance.
It has been noted that, in North Carolina, license is not among requirements for starting new businesses. In fact, there are businesses in North Carolina that do not have any license. Nevertheless, there is need to acquire a license before engaging in any business operations; thus, entrepreneurs should consider acquiring tax compliance guidelines for their business structure. For instance, if business involves sales of merchandise, there is needed to acquire tax number for sales called “sales and use tax numbers.” Moreover, business with employees is supposed to register for both NC taxpaying number and Federal Employee Identification number.
Business owner prepares to register his or her business using names derived from the business structure, and they can be required to incorporate the business through an attorney. Moreover, names should be unique, while businesses should be registered according to the form of ownership. Moreover, businesses are registered with register of deeds at the county level, and licenses are acquired, hence allowing these businesses to operate legally.
Form of business ownership influences ways of accessing funds, management and taxes paid to the government (Hisrich, Peters & Dean, 2010). Appropriate form of business ownership for S&S Recycling Company is sole proprietorship. In fact, this form of business can be formed easily, and it will be trading on materials that are regarded as waste. In fact, purchasing cost for these materials is low, and this may result to an increased profit margins. According to the business proposal, it is seem like a single individual can have complete control over the business. Moreover, the business will incur low level of tax; thus, this will also ensure that there are high profit margins.
However, there is significant risk associated with this form of business, and this may create perceptions that partnership is better form of business compared to sole proprietorship (Hisrich, Peters & Dean, 2010). Moreover, partnership helps in reducing impact of loss suffered by business owners. In fact, there are significant costs that would be associated with starting and co-coordinating garbage correction, and this would reduce level of profitability.
In conclusion, at the early stage of businesses, owners should focus on meeting business management requirements. Eventually, as an enterprise grow, it becomes difficult for the owner to manage entire business operations; this leads to need for hiring qualified personnel to oversee some operations. Furthermore, with continuous business growth, the company will expand to accommodate chief executive officer, chief operation officer, chief financial officer, chief marketing officer and chief technology officer.
Hisrich, M., Peters, M. & Dean S. (2010). Entrepreneurship. New York: Macgrow/Irwin.