Liberty University Abstract Introduction
Alex, Bill, Carl, and Devon have inherited an organic farm from their father and are interested in restructuring the company to a different business form. The four siblings have no desire to take part in the day-to-day operation of the farm, but they have a cousin named Xavier that is willing to oversee operations. Xavier has been the father’s protégé for the past five years and has fallen in love with farm life. He will continue to manage the operations of the orchard, vegetable gardens, grain fields, trout pounds, poultry operation, as well as the fall corn maze and pumpkin patch that have been a staple in the community for years. The five family members are all…show more content… 2).
I aim to advise the family in a way that honors God and allows them to set up this business in a way that honors God as well. The Bible instructs us all in Colossians 3:23-24 that “whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ” (ESV). The siblings must know that regardless of the business form they choose to operate by, they will be held accountable for this company and its activities. Even though their goal is to choose a business form with limited liability and lower their tax burdens, they will still be responsible to pay taxes and debts owed by the company. Proverbs 27:17 says “Iron sharpens iron, and one man sharpens another” (ESV). Alex, Bill, Carl, and Devon will be called upon to sharpen one another to display Christ to others through sound business practices.
When it comes to partnerships Alex, Bill, Carl, and Devon will have two options- a general partnership or a limited partnership. Partnerships are beginning to be a business form of the past. Once upon a time, partnerships were “the default form of business and provided the benefit of pass-through taxation, but lacked the important feature of limited liability” (Chrisman, 2010, p. 465). In a general partnership, each partner associated with the entity will be held liable for their own business decisions as well as