The paper "Advantages and Disadvantages of Unincorporated Business Structure" is a perfect example of business coursework. In the modern-day world, the majority of business people have embraced the unincorporated type of business because of its numerous advantages. Nevertheless, just like any other business enterprise, it has to be registered with relevant authorities before the owner can start operations. The unincorporated structure has been said to be the simplest and easiest form of business to carry out, as the requirements are also minimal. Since it is normally a small firm, most of them start as small entities and then grow over time.
As a result, the capital required may be minimal compared to another form of business enterprises. According to Roach (2014), these kinds of businesses may be operated by one person although over time, as operations are diversified, more people can be brought in to assist as employees. In addition, he has observed that the decisions of these kinds of businesses are normally dependent on the number of people who own it. This means that, although unincorporated business enterprise can be owned by one person, there is a possibility of others coming together and assisting in raising the required capital to open up the business. Advantages of unincorporated business structure An unincorporated business structure does not require a lot of paperwork to commence operations.
According to Roach (2014), once the business is licensed to carry out its operations, the entrepreneur can go ahead and open its doors for clients to come in. This is unlike the corporate business structure where the owners may be required to get licenses from different departments in the government. In addition, this kind of business structure is also ideal because it has no limit on the number of people who can be shareholders.
As soon as the business is registered, the shareholders can pull their resources together and the business will be up and running within a short time. This, at times, works well when the business is also not performing well. This means that if the business owned by various shareholders operated at a loss, then the burden of such a loss is shared by all the members.
Thus, the performance of the business may not be affected as the loss realized is shared amongst the shareholders. As the business grows, the company may decide to bring in experienced employees to help in running it. The concept of employing other people is very critical as it leaves the owner of the business as the overall decision-maker. Therefore, there is minimal interference with the operations of the business from the owner. Unincorporated business structure is also exempted from numerous taxes levied against other forms of business in the country.
Since the business is registered as a private entity, the amount of personal taxes paid by the owner to the government is also viewed to have come from the business, and hence, there is no double taxation. According to Roach (2014), because the business owners declare the income of their business in their personal tax returns, they are exempted from paying other types of taxes as is the case with other forms of business enterprises.
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