You should write a 250 – 300 word memo on the following situation.
Memo- 1
Mr. Able is the owner of a sole proprietorship, which does mowing, planting, and various landscaping services. The business has a lot of trucks and equipment to do the work. He is in constant need of new equipment to handle the tremendous growth in the business. He has 20-30 employees that work on jobs during the year.
Mr. Money is his personal banker. He has some concerns about the form of the business.
You are to write a 250 – 300 word memo to Mr. Able and explain the differences between a sole proprietorship and corporation.
You are the new “accountant” that just graduated and has started working for Mr. Able. Your title is Assistant Controller.
Should Mr. Able incorporate the business?
What are some of the advantages and disadvantages?
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