{"id":2954,"date":"2023-02-19T16:11:12","date_gmt":"2023-02-19T16:11:12","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-7-1-owning-a-business-sole-proprietorship\/"},"modified":"2025-05-12T18:22:01","modified_gmt":"2025-05-12T18:22:01","slug":"apply-it-7-1-owning-a-business-sole-proprietorship","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-7-1-owning-a-business-sole-proprietorship\/","title":{"raw":"Apply It 7.1: Owning a Business, Sole Proprietorship","rendered":"Apply It 7.1: Owning a Business, Sole Proprietorship"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the factors that go into choosing the best organizational type for your business&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:13185,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the factors that go into choosing the best organizational type for your business<\/span><\/li>\r\n\t<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the advantages and disadvantages of sole proprietorship&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:13185,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the advantages and disadvantages of sole proprietorship<\/span><\/li>\r\n<\/ul>\r\n<\/section>\r\n<section class=\"textbox example\">\r\n<h2>Starting a Business<iframe style=\"font-size: 16px; font-weight: 400;\" src=\"\/\/plugin.3playmedia.com\/show?mf=9882519&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=UGSlED1Jx1Y&amp;video_target=tpm-plugin-v2lu5691-UGSlED1Jx1Y\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/h2>\r\n<p class=\"p1\">You can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/typesofbusinessorganizations_transcript.html\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">transcript for \u201cTypes of Business Organizations\u201d here (opens in new window).<\/span><\/a><\/p>\r\n<p>If you wanted to turn your hobby of baking cupcakes into a business, which is the best organization type to choose?[reveal-answer q=\"997758\"]Click to Show Sample Answer[\/reveal-answer]<br \/>\r\n[hidden-answer a=\"997758\"]The best type for you may not be the same as the best type for someone else. Which type is best depends on your own assessment of factors such as the costs of starting up your business, how much control you want to have, whether you want to share your profits, your risk tolerance, and tax considerations.[\/hidden-answer]<\/p>\r\n<\/section>\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"375\"]3902[\/ohm2_question]<\/section>\r\n<section class=\"textbox linkToLearning\">In some states, there are \"cottage food\" laws that apply to home-based bakeries. These laws are aimed at small businesses that operate from someone's home kitchen rather than a commercial kitchen. <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/how-to-start-bakery-business-from-home\/\">Research cottage food laws<\/a> in your home state if you are thinking about baking as a business and want to start small.<\/section>\r\n<p>&nbsp;<\/p>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the factors that go into choosing the best organizational type for your business&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:13185,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the factors that go into choosing the best organizational type for your business<\/span><\/li>\n<li><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Understand the advantages and disadvantages of sole proprietorship&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:13185,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:0,&quot;11&quot;:4,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:10}\">Understand the advantages and disadvantages of sole proprietorship<\/span><\/li>\n<\/ul>\n<\/section>\n<section class=\"textbox example\">\n<h2>Starting a Business<iframe loading=\"lazy\" style=\"font-size: 16px; font-weight: 400;\" src=\"\/\/plugin.3playmedia.com\/show?mf=9882519&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=UGSlED1Jx1Y&amp;video_target=tpm-plugin-v2lu5691-UGSlED1Jx1Y\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/h2>\n<p class=\"p1\">You can view the <a href=\"https:\/\/course-building.s3.us-west-2.amazonaws.com\/Intro+to+Business\/transcripts\/typesofbusinessorganizations_transcript.html\" target=\"_blank\" rel=\"noopener\"><span class=\"s1\">transcript for \u201cTypes of Business Organizations\u201d here (opens in new window).<\/span><\/a><\/p>\n<p>If you wanted to turn your hobby of baking cupcakes into a business, which is the best organization type to choose?<\/p>\n<div class=\"qa-wrapper\" style=\"display: block\"><button class=\"show-answer show-answer-button collapsed\" data-target=\"q997758\">Click to Show Sample Answer<\/button><\/p>\n<div id=\"q997758\" class=\"hidden-answer\" style=\"display: none\">The best type for you may not be the same as the best type for someone else. Which type is best depends on your own assessment of factors such as the costs of starting up your business, how much control you want to have, whether you want to share your profits, your risk tolerance, and tax considerations.<\/div>\n<\/div>\n<\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm3902\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=3902&theme=lumen&iframe_resize_id=ohm3902&source=tnh&show_question_numbers\" width=\"100%\" height=\"375\"><\/iframe><\/section>\n<section class=\"textbox linkToLearning\">In some states, there are &#8220;cottage food&#8221; laws that apply to home-based bakeries. These laws are aimed at small businesses that operate from someone&#8217;s home kitchen rather than a commercial kitchen. <a href=\"https:\/\/www.escoffier.edu\/blog\/food-entrepreneurship\/how-to-start-bakery-business-from-home\/\">Research cottage food laws<\/a> in your home state if you are thinking about baking as a business and want to start small.<\/section>\n<p>&nbsp;<\/p>\n","protected":false},"author":21,"menu_order":7,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"Types of Business Organizations\",\"author\":\"One Minute Accounting\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/UGSlED1Jx1Y\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2947,"module-header":"apply_it","content_attributions":[{"type":"copyrighted_video","description":"Types of Business Organizations","author":"One Minute Accounting","organization":"","url":"https:\/\/youtu.be\/UGSlED1Jx1Y","project":"","license":"arr","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2954"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":15,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2954\/revisions"}],"predecessor-version":[{"id":9187,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2954\/revisions\/9187"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2947"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2954\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=2954"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=2954"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=2954"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=2954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}