National Car Rental: An International Company of Renting Cars - Research Paper

Introduction

National Car Rental is an international company of renting cars, which, is located in Clayton, Missouri. Enterprise Holdings own national Car Rental. Twenty-four independent car rental operators established National Car Rental in the year 1947. It started with eight hundred vehicles based in sixty locations. National Car Rental provides the largest revenue collection and employment opportunities in the world in terms of transportation. Enterprise Holdings circulate vehicles and trucks primarily for rentals. The rental car business is a business structure embraced by small and medium-sized business. This structure of a business helps meet the transportation needs of a company with minimal cost in terms of money and time.Enterprise Holdings chose a corporation form of a business structure because it is a separate entity from the owners and legally acknowledged. Corporations are one of the businesses that can last for the longest time ever. Corporations enjoy most of the privileges and rights as persons in the business would do. For example, the corporate can own assets, borrow loans, and enter contracts. Having a business as a corporation is one of the best decisions made by Enterprise Holdings. The reason is that they enjoy most of the benefits, which is not found in those other forms of business.

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Benefits of having a business as a corporation include and not limited to limited liability. Shareholders are not directly responsible for any liabilities in the business. Therefore, in the case of unpaid debts, the creditors cannot attack the owners' property. For a business to benefit strongly from this aspect, it must be a separate entity entirely. Secondly, corporations have an endless life span. Incorporated companies are not limited to the life of the owner. For instance, a business cannot end because the owner has died. Such features within a business help the customers build confidence with the company. Thirdly, corporate deductions are available. Corporations may pay medical covers and insurance for their employees. Shareholders enjoy this as it limits their deductions at an individual level, therefore, enjoying high salary.

However, there are likely challenges, which are expected to affect incorporated businesses. For example, double taxation. Double taxation occurs when the corporation has already paid the taxes, and on dividing the dividends to the shareholders, they are taxed. Double taxation is avoided by establishing a tax status with the Internal Revenue Service. Secondly, high formation fees and maintenance expenses are a challenge too. For any corporation, they must sign with the states and pay some fees to be allowed to operate. Incorporation challenges cannot outweigh the advantages because the problems can be controlled in one way or another. I think Enterprise Holdings made the right choice to do incorporation, having in mind the above advantages.

According to me, every business structure is right depending on the type, objective, location, and size of business. For Example, Limited Liability Company can conduct any form of business apart from banking and insurance. In most of the business structures available, the owner is directly responsible for any liabilities in the market. For example, it is easy to start a sole proprietorship but hard to maintain in case of debts in the business because the owner is responsible for all that. Summing up, incorporating a company remains the preferable form of a business structure because it does not directly and negatively touch on the individual. Again, it helps protect the assets of the owner, primarily when the assets are structured within the corporation.