Car Wash

Car Spa
This research paper lays out a proposed plan for a small business in the form of a sole proprietorship. The proposed business idea is for a Car Spa. A Car Spa is essentially a car wash business that offers quick washing and detailing of automobiles. The proposed business is specific to the concept of “hand washing” because there is a certain clientele that requires this type of service. This paper elaborates on certain facets of this business like; advantages/disadvantages of the business model, financial statements, tax implications, and a rationale for this specific business choice.
Advantages/Disadvantages of Sole Proprietorship
A sole proprietorship has certain advantages such as possessing complete decision-making and control over the business. This type of business model also offers the proprietor the option to sell or transfer the said business at his or her discretion. Other advantages include not paying corporate taxes, and legal costs are at a minimum. The last advantage of this business model is that it requires very few if any formal business requirements (All Business.com, 2007).
Some of the disadvantages associated with a sole proprietorship are, liability of debt and liability of obligations to the business. These are personal liabilities that come with this business model and the burden lies with the sole proprietor. The sole proprietor is liable for any incurred liabilities arising from acts committed by his or her employees. A sole proprietorship is subject to strong scrutiny by outside investors, and business decisions and responsibilities are the sole discretionary burden to the sole proprietor. Business financing for sole proprietorships come in the form of personal assets and business loans. Given the current state of today’s economy, the latter may prove to be a potential challenge or set-back (All Business.com, 2007).

Advantages/Disadvantages of a Partnership
According to Kieso, Kimmel, and Weygandt (2003),” a partnership...