1. Objectives * Identify the forms of different business ownership * Understand the variety of ways to get started as a business owner * Name the different legal steps to take in establishing a business Logistics: the planning, implementation and coordination of the details of an operation

2. There are ways 1)Start a new business – start from scratch! 2)Take over the family business 3)Purchase a franchise 4)Purchase an existing non-franchise business

3. There are general ways 1)Sole proprietorship – owned and operated by one person. Advantages Lower tax burden Less regulation Entitlement to all profits Disadvantages Unlimited liability – fully responsible for all debts and legal judgments Examples: sub-contractors like plumbers or electricians, beauticians.

4. 2)Partnership – equal ownership by two or more persons Advantages Ease of decision making (less regulation) Taxed only on profits Disadvantages Liability is unlimited for all partners Examples are law offices, medical and dental offices, real estate agencies

5. 3)Corporation – a business owned by several people but considered to be its own single entity Advantages Limited liability. Legal protection of personal property Stockholders can be used to raise money Disadvantages Government regulation Higher taxation Decisions can be slow to make

6. 4) Limited Liability Company – a hybrid between a corporation and partnership Advantages Limited liability. Just like a corporation Profits are not taxed until passed along to the partners. Just like a partnership Disadvantages Relies on smaller number of individuals to raise money Examples abound in most any business class.

7. Step One: Get the help you need from an accountant or attorney. They will ensure that you set up the proper type of legal entity Step Two: Register the business with the state (secretary of state office) Step Three: Obtain business licenses Let’s look at the process here in http://bls.dor.wa.gov/ http://bls.dor.wa.gov/

8. Assignment: Work with a partner & log onto the internet Look up two businesses that are currently for sale 1.Franchise. Search “franchise for sale” 2.Existing business. Search “businesses for sale” For each: Business name, location, costs, at least one fact about it that each of you find interesting  Be prepared to share via “random drawing”