BUSINESS PROPOSAL Assignment Example | Topics and Well Written Essays - 1250 words

BUSINESS PROPOSAL - Assignment Example Small Business Administration (SBA) is the Guam’s government official agency that deals with helping in the formulation of business plans and securing funds necessary for its establishment. In the Business plan, investors should include the legal structure of the company. This would be determined by the following factors; investor’s ownership, management responsibilities and tax consequences. The various types of businesses include; sole proprietorship which has advantages like quicker tax preparations, low start up costs and ease of money handling. Its disadvantages include; personal liability and lack of financial control. In the case of starting a corporation, a type of business which has legal rights that separate its liability from the owners’ and it’s chartered by the state (Norman, 1999). To start this kind of business in Guam, investors are required to pay a filing fee of 50$. This levy is used to fill by-laws and articles of incorporation at the G uam Department of Revenue and Taxation. A corporation that seeks to be taxed as a corporation is called a â€Å"C† corporation. It pays federal and income tax on earnings while those that don’t pay income tax on their proportionate shares are called â€Å"S† corporations. ... The EIN can be secured from Internal Revenue Service offices. The Employer Identification Number will be useful in opening of the business bank account. This is done at the initial stage and it is an essential requirement for all companies and businesses that hire employees. The Employers Identification Number is issued to the applicant on the submission of form SS-4 to the Internal Revenue Service. Furthermore, there is an option of applying for the EIN online for instant issuance (Daily, 2010). Next, the investor registers for taxes. All companies incorporated in Guam have a mandate to register for one or several identification numbers that are tax-specific, licenses or permits which includes sales tax, unemployment tax and income tax withholding. According to section 26201, Article two, Chapter twenty six of Title eleven of the Guam Code of Annotated, privilege taxes should be assessed, levied and collected monthly against persons on the basis of their activities and business in G uam determined by application of rate against gross proceeds of sales, values or gross income. Businesses and business owners are required to pay Use Tax under the Guam’s Use Tax law which is applicable on the occasion that one has imported personal property that will be consumed or used in the operations of your business. If the business hires employees, it is required to pay the Payroll Tax (Norman, 1999). Guam has a separate Territorial Tax system apart from the United States based on the Internal Revenue Code. As business owner or entity conducting operations in Guam, is required by this code to file and report a Guam Territorial Tax Return. In title 26 and 31 of this code, business owners are mandated to file form 8300 if the business earns more than ten thousand