Business Entities: Each business entity is structured differently and, as a result, has unique tax implications. The types of business entities covered in this course were: sole proprietorships, partnerships, C Corporations, S Corporations, and Limited Liability Companies (LLC). The entities were differentiated by the number of owners and/or shareholder, whether they are a pass-through entity or not, and the level of liability the shareholder(s)/ owners(s) are responsible for. A sole proprietorship
Topic #1: Choice of Entity Question 1 - How is a business entity defined and what are some of the characteristics of a business entity as highlighted in R.P. Groetzinger? Answer: A business entity must take part in some form of business activity. However, the term business activity is too vague of a definition to provide an adequate understanding of what constitutes a business entity. When examined further, the case of R.P. Groetzinger helps to provide some incite (American Federal Tax Reports)
FORMS OF BUSINESS ORGANISATIONS Definition Sole-Proprietorship A business owned by one person Partnership An association of two or more persons carrying on business in common with a view to profit Limited Partnership (LP) A partnership consisting of two or more persons, with at least one general partner and one limited partner Limited Liability Partnership (LLP) A partnership where the individual partner’s own liability is generally limited Company A business form which
Choosing a Business Entity The Importance of Choosing a Business Entity As an accountant and Tax Preparer in New York, Monique Desir works with many tax payers who require a business entity. There are many factors that go into the choosing of a business entity, and the implications for the business can be large. If you are working towards a new business, find a tax professional who knows the ins and out of business entities in your area. What is a Business Entity? A business entity is not only
Introduction The business entities of corporations and partnerships share many similarities, however key difference exist, mainly in terms of formation, taxes and liability. This paper is focused primarily on the issue of liability and will address the effects of damages, disclosure requirements and personal liability for both corporations and partnerships. Additionally Amazon.com will be examined as a partnership rather than a corporation to further illustrate these differences. Damages Estimate
Business Entities: Corporations vs. Partnerships The business entities of corporations and partnerships share many similarities, however key difference exist, primarily in terms of formation, taxes and liability. This section will largely address the issue of liability, in terms of the effects of damages, disclosure requirements and personal liability for both corporations and partnerships. Additionally Amazon will be examined as a partnership rather than a corporation to further illustrate these
the client, based upon the entity utilized for the purchase and the method of purchase. ANALYSIS: The type of business entity that Ms. Growne selects can have both legal and tax implications. Having said this, there are some tax and legal considerations to examine regardless of the type of purchasing entity. Specifically, one of the first decisions that Ms. Growne should make, is whether she wants to acquire the assets of the tavern or the stock/interests in the business (McGuireWoods, 2013). Although
when starting a business, one of the most important is the type of business entity you select for your company. Not only will this decision have an impact on how much you pay in taxes, it will affect the amount of paperwork your business is required to do, the personal liability you face and your ability to raise money. It 's not a decision to be entered into lightly, either, or one that should be made without sound counsel from business experts. “Kalish says it 's important for business owners to seek
Choosing a Business Entity After extended negotiations, May of 2001, Mr. Henry Phillips agreed to acquire the franchises, assets, and assume the liabilities of Telecable Communications. In order to make the purchase, he sought the help of six investors, two which were appointed by a friend, Mr. Carter. His ultimate goal was to choose a business entity that would accommodate the different interests of the different parties. A limited liability company (LLC) is Mr. Phillips’ best option; a majority
=Characteristics of Business Entities= Before we can review each type of business entity, we need to cover a few characteristics that may differentiate each business structure: ' ' 'Liability ' ' ': Liability refers to how much financial responsibility will be held by a business or individual in the event of business losses. In business terms, this often means who will be held financially responsible in the event that debts cannot be repaid or the business suffers losses from an action by a court