Starting a Business - Term Paper Example

The paper dwells in detail and focuses on the aspects of starting a sole propriety-based fast food chain in New Jersey. Starting even a small business can lead up to big decisions being made by the owner right from the start, which will need him to be ready to make some important legal decisions being one of the crucial points of future business success. The first and foremost decision to be made is to decide what kind of business it would be, the following article discusses running a sole propriety fast food chain.

Listed below are different kinds of business entities. A sole proprietorship is a kind of business entity that is owned and run by a single individual. A limited liability company is a business entity that is a blend of partnership and cooperate structure. Fast food chains are recently becoming a very popular source of food in the United States of America. Therefore starting in a field which is hot with opportunity and ever increasing may give you a better market leading to better chances of running a successful business.

The only disadvantage being the competitiveness in such a field. Research is an important aspect of business one must complete before starting a business to get all the essential information. For example, how does he want to run the company? Will the person be able to handle affairs of the business alone or may require partners? Sole propriety business is said to be the easiest and the simplest way to start up due to its ease of setup and nominal cost. It is a kind of a set up where a single person starts up a business and he himself is the face of the company and is solely responsible for everything in the company from funding, to earning profits and to being liable to the losses.

Despite all the advantages of a sole proprietorship it can sometimes be proved risky as the owner is fully liable for all the business debts. In the state of New Jersey the first step is to being registered at the central county it can be under the owners name or a fictitious name although in legal matters it is not a separate entity. In such kinds of businesses owner usually signs contracts with his own name including the matters of transfer of money, writing checks or holding bank accounts.

Another step to take in setting up a business is finding a location to set up your business. It may be an office space, a retail space or a warehouse. In the case of starting a business you would require a retail space somewhere in the commercial district. It depends on the owner whether to buy, rent or lease the space. The next step includes getting licenses, permits and getting registered (“Doing Business in New Jersey”, n. d.). Starting a fast food chain requires the owner to get a license from the Division of Health before you start your business.

All businesses must register for tax and employee purposes with the New Jersey Division of Revenue, irrespective of the intent to hire employees. Federal Employee Identification Number (FEIN) is required by the state in order to register for taxes and employees purposes so that the owner can start running his business. Although in a sole propriety the owner can use his or her social security number. Internal