Entity Business Plan

Entity Business Plan

For the purpose of this assignment, the Entity Business Plan the business venture that will be cover is a Sports Bar Franchise. The name of the Sports Bar is John's Sports Bar & Grill. Owning a business, organization or franchise is not as simple as one might assume. There are many things to consider when opening a business - the first and most important choice to make is what form of business - or what type of business entity - the company will take.

A corporation is the most dominant form of a business organization in the United States, size of ownership in a corporation can range from one owner to thousands of owners that are called "shareholder's" (Cheeseman, 2007). A corporation is a fictitious legal entity that is creating according to statutory requirements and corporation codes that are state statutes that regulate the formation, operation and dissolution of corporations (Cheeseman, 2007).

English: busines plan

John_Deere_4630_Tractor.jpg

English: Mallie's Sports Grill & Bar, 19400 Northl...

Corporations can range from government corporations, non-profit corporations, and for profit corporations (Cheeseman, 2007). Advantages of a corporation include limited liability, strong financing, perpetual life of the business and high liquidity of investment (Cheeseman, 2007). According to Cheeseman another advantage to a corporation is the centralized management by the board of directors that makes policy decisions concerning the operation of the corporation. Disadvantages to a corporation include a double tax and having to comply with statute (Cheeseman, 2007).

John's Sports Bar & Grill will start out as an S-Corporation. According to the U.S. Tax Code "An S corporation or S-Corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S Corporations do not pay any...