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¶ … ownership types, each with their own advantages and disadvantages. The simplest structure is the sole proprietorship (Wyman, 2013). In this structure, income flows to the proprietor for tax, but the proprietor bears all the risk of the entity. This is an inappropriate structure for a company that sells food and has employees. A partnership is an option. The partnership agreement will outline the contributions that each partner makes, and the split of the profits. The partners still bear the risk of the business, which again is not appropriate for a food service establishment, nor for that matter a moving vehicle.
The most logical form of business organization is the corporation, but there are several types of corporation to choose from. A limited liability company enjoys flow-through taxation, but limits the liability of the owners. This form of business organization is beneficial for a company like a food truck, but it is worth noting that the IRS does not recognize LLCs, so the company must be organized in one of the other ways for taxation purposes....
The principals would only be taxed on whatever salary or dividends they draw from the business, plus whatever capital gains they would enjoy when they sell the business. It is recommended in this case that a partnership be formed, but taking advantage of the LLC form to limit downside liability while retaining flow-through taxation.
Marketing is a key element to any successful business. Food trucks, because of their mobile nature that compels customers to seek them out, need to have the ability to create a buzz (Lagorio, 2010). To this end, the promotion strategy is a key success factor. Social media is common for food trucks, because it is one of the main ways to reach the target demographic. In addition, the constant changing of locations necessitates an easy way to communicate with fans and potential customers about one's location. Twitter is particularly good for…
Works Cited:
Wyman, K. (2013). Ownership structure types. Washington Secretary of State. Retrieved March 7, 2013 from http://www.sos.wa.gov/corps/registration_structures.aspx
Lagorio, C. (2010). How to open a (successful) food truck. Inc. Magazine. Retrieved March 7, 2013 from http://www.inc.com/guides/2010/05/opening-a-successful-food-truck.html
MindTools. (2013). The marketing mix and 4 Ps. MindTools.com Retrieved March 7, 2013 from Lagorio, C. (2010). How to open a (successful) food truck. Inc. Magazine. Retrieved March 7, 2013 from http://www.inc.com/guides/2010/05/opening-a-successful-food-truck.html
ownership of guns by the public has been a topic of much needed debates for quite some time now. Various organizations and support groups have been in action for the pro-or anti-views on whether a citizen should be allowed to own and keep a gun at his person or his property. Many of the people who own guns do so for hunting, self-defense or for their collecting pleasure. But
There are several different types of business entities, and they each come with advantages and disadvantages. The first type is the sole proprietorship. This type is best suited to a small business that is run by just one person, as the owner bears all of the liability. That means both financial and legal liability – should anything happen with the business, the owner is responsible. The owner's personal assets are
Leasing Aircraft The emergence of low cost carriers has marked a shift in the aircraft industry away from owning aircraft and towards leasing and subleasing of aircraft. National and legacy carriers have long struggled with profitability, and their business model is in part a reason for this. Low cost carriers have attempted to resolve the business issues of heavy debt burden and excess capacity by leasing aircraft rather than owning them.
Franchising of Hotels: Advantages vs. Disadvantages The objective of this study is to examine the advantages and disadvantages of franchising hotel operations. Toward this end, this study will conduct an extensive review of literature in this area of inquiry as well as interview two individuals, Mr. X, and Mr. Y in order to determine whether there are more advantages or disadvantages. Mr. X is the General Manager of a well-known hotel in
For the government and the companies involved, the resultant lack of competition is easily controlled in terms of what is broadcast. The government can then more easily dictate what the public is to receive via the airwaves. For the companies involved, increased growth means increased revenue and success. For the public, the most obvious disadvantage of the lack of competition means a probably lack of objectivity in broadcasting. This has
Financing and Foreign Ownership of Real Estate in Mexico Due to the similarities of real estate transactions in general, many Americans assume that the basic real estate terms and principles of the United States also hold true in Mexico (Peyton, 2003). Because much of the American real estate terminology is adopted for real estate transactions in Mexico, a lot of the paperwork appears to be similar. However, many aspects of Mexican real