Sole Proprietorship and Partnership

Sole Proprietorship and Partnership 

When starting a new business, choosing the appropriate form of organizational structure is important. Two of the most common forms of organizational structures are sole proprietorships and partnerships. In this scenario, Jeremy is considering starting a lawn care service and whether to form a sole proprietorship or partnership.

A sole proprietorship is a business organization where a single individual owns and operates the business. This type of organization is relatively easy to set up, has minimal legal requirements, and gives the owner complete control over the business. The advantages of a sole proprietorship for Jeremy include having complete control over the business operations, making all the decisions, and keeping all the profits. Additionally, sole proprietorships are relatively easy to set up, require minimal legal fees, and have low startup costs.

However, there are several disadvantages to consider when choosing a sole proprietorship. Firstly, the owner of a sole proprietorship is personally liable for all the debts and legal obligations of the business. Secondly, raising capital can be difficult since the owner cannot issue stock to raise funds. Lastly, the business may suffer if the owner becomes ill or passes away, as there may not be anyone to run the business.

On the other hand, a partnership is a form of business organization where two or more individuals share ownership of the business. In this scenario, Jeremy is considering asking his father or a co-worker to partner in his new lawn care company. A partnership’s advantages for Jeremy include having someone to share the workload and decision-making responsibilities and access to additional capital. Additionally, partnerships have fewer legal formalities than corporations, and the profits and losses are shared among the partners.

However, there are several disadvantages of partnerships that Jeremy should consider. Firstly, the partners are personally liable for the debts and obligations of the business. Secondly, there may be disagreements between partners, which can lead to legal disputes and potentially harm the business. Lastly, the partnership may dissolve if one partner leaves the business.

In this scenario, I believe a sole proprietorship would be the best form of organizational structure for Jeremy. Jeremy has already worked for a large lawn care company for several years and has gained significant experience in the field. Furthermore, starting a lawn care service would not require much capital, so Jeremy would not need to take on a partner to raise funds. Additionally, the business will likely be profitable since the lawn care company is in a sunny climate with a stable demand year-round. By choosing a sole proprietorship, Jeremy would have complete control over the business operations and would not have to worry about disagreements with partners.

Starting a lawn care business requires careful planning and consideration of several resources that will be needed. The following are some of the key resources that Jeremy will need to start his lawn care business:

• Equipment: Lawn care businesses require specialized equipment such as mowers, trimmers, and blowers. Jeremy will need to purchase or lease this equipment to start his business. The equipment cost can vary widely depending on the quality and quantity required.
• Vehicle: Jeremy will need a reliable vehicle to transport himself, his equipment, and his crew to job sites. Depending on the size of his crew and the amount of equipment he has, he may need to purchase a truck or
• Insurance: Lawn care businesses require insurance to protect against potential

Jeremy must purchase liability, worker’s compensation, and vehicle insurance.

• Marketing: To attract customers, Jeremy must invest in marketing efforts such as creating a website, business cards, and flyers. e may also need to advertise in local newspapers and on social.
• Licenses and Permits: Depending on the location of his business, Jeremy may need to obtain licenses and permits to operate. These can include business licenses, permits for using certain chemicals or pesticides, and permits for operating vehicles on public roads.
• Employees: If Jeremy decides to expand his business, he may need additional employees to assist with lawn care services. e will need to consider the cost of wages, taxes, and other employee.
• Accounting and Bookkeeping: Jeremy must keep track of his business’s financial transactions, including revenue, expenses, and taxes. e may need to hire an accountant or use accounting software to manage his
• Supplies: Lawn care businesses require various supplies, such as fertilizers, pesticides, and other chemicals. Jeremy will need to purchase these supplies regularly to provide customer service.

While starting a lawn care business can be profitable, several factors can lead to failure, including:

• Competition: Lawn care businesses can be competitive, especially in areas with similar businesses. Jeremy will need to research the competition and find ways to differentiate his services from
• Seasonal Demand: While the lawn care business in this scenario is located in a sunny climate with a stable demand year-round, the demand for lawn care services may fluctuate seasonally in other locations. Jeremy will need to plan for slower business periods and adjust his operations.
• Weather Conditions: Adverse weather conditions, such as heavy rain or drought, can impact the demand for lawn care services. Jeremy must plan for such events and have contingency plans to keep his business running.
• Pricing: Pricing can be a major factor in the success of a lawn care business. f Jeremy’s prices are too high, he may lose customers to competitors. f his prices are too low, he may not be able to cover his

In conclusion, starting a lawn care business requires carefully considering several resources and potential factors that can lead to failure. y analyzing the advantages and disadvantages of sole proprietorship and partnership, Jeremy can choose the appropriate organizational structure for his business. Additionally, by identifying the key resources required to start his business and considering potential factors leading to failure, Jeremy can plan and prepare for a successful lawn care business venture.

References

Alexandra, T. (2023). The Pros and Cons of a Sole Proprietorship. Investopedia. ttps://www.investopedia.com/terms/s/soleproprietorship.asp

Carol, M. Koop (2023). The Pros and Cons of a Partnership. Investopedia. ttps://www.investopedia.com/terms/p/partnership.asp

Kimberlee, L. (2023). how to Start a Lawn Care or Landscaping Business. The Balance Small businesses. https://www.forbes.com/advisor/business/how-to-start-a-landscaping-business/

Mancuso, A. (2019). orm Your Own Limited Liability Company. Olo.

Small Business Administration. n.d.). Register Your Business. ttps://www.sba.gov/business-guide/launch-your-business/register-your-business

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C01 Introduction to Business

Directions: Save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the “Assignment Format” page on the Course Home page for specific format requirements.

Sole Proprietorship and Partnership

Part A:

Jeremy has worked for a large l lawn care company for several years. His lawn care company is in a sunny climate, priding a stable demand year-round.  After receiving an Associate’s degree in Business, Jeremy decided that he would like to start his lawn care service.  e is considering whether starting a sole proprietors p or a partnership would be best.  Jeremy is considering asking his father or a co-worker at his current company to partner in his new lawn care company. Escribe the advantages and disadvantages of a sole proprietorship and partnership in this scenario. Which form of organizational structure do you think is best for Jeremy? Justify your opinion with supporting facts.

Part B:

Analyze the resources the lawn care business owner Jere, will need to start the business.  Additionally, what factors might lead to failure with this specific type of business?