Legal Structure of a Business 4
LEGAL STRUCTURE OF A BUSINESS
Table of Contents
Introduction 3
Analysis 3
Conclusion 4
References 5
Introduction
The business I choose to edifice is a small departmental store in Canada. The departmental store is a retail industry which will offer several types of households and grocery products to the people of Canada. Further, there is tremendous growth opportunity by setting up departmental stores. It can also be expanded in various parts of Canada along with other parts of the world. This will help to generate huge revenue, profitability and enhance the
and of the departmental stores globally.
Analysis
There was a huge growth in the retail industry with respect to the general merchandise stores in Canada. The rate of increase was approximately 30%. It was the apparel retailers in the departmental stores in Canada which earned the most. There are over 500 departmental stores in Canada with Winners, Hudson Bay and Nordstrom to name a few (Smith, XXXXXXXXXXMy departmental store will be located in Toronto, Canada and will sell various households such as apparels, grocery products and home decors. The NAICS code for my departmental store will be XXXXXXXXXXand will fall in the category of Departmental Stores expect discount departmental stores (NIACS, 2017).
The legal structure of the departmental store will be a sole proprietorship business where I will be sole liable person with respect to the liabilities and profits of the company. There will be initial expenses which needs to be incu
ed prior to commencement of the business such as state and federal taxes, lease of business equipment and office spaces, banking fees and professional services of the business contracts. Further, I have chosen a sole proprietorship business for the departmental store due to various advantages such as low costs, easy setup, tax deduction such as health insurance and easy exit with no or minimal paperwork. Departmental stores such as Walmart is also an example of sole proprietorship business in USA (Stowers, 2022).
Conclusion
Therefore, the sole proprietorship departmental store setup in Canada will help the people to get goods at prices which is lower than the market price but not at a discount. This will help the customers footfall as they will be attracted due to purchase products due to the already low price of the products.
References
NIACS, XXXXXXXXXXCHANGES FROM 2012 TO 2017 NAICS STRUCTURES: THE HIGHLIGHTS. Retrieved from: https:
www.naics.com/changes-from XXXXXXXXXXnaics-structures-highlights-highlights
Smith, P XXXXXXXXXXDepartment stores in Canada- statistics & facts. Statista. Retrieved from: https:
www.statista.com/topics/4433/department-stores-in-canada/#dossierKeyfigures
Stowers, J XXXXXXXXXXHow to Choose the Best Legal Structure for Your Business. Business News Daily. Retrieved from: https:
www.businessnewsdaily.com/8163-choose-legal-business-structure.html