Business Planning and Structures Essay

| The establishment relies on their customers to shop at their stores but also they try and bring in

There are several different types of business ownership which are most commonly used in business’ and company’s today, these include; Co-operative which is a business owned by its employees, Partnership which is a business owned by between 2 and 20 people, Private limited which is a business owner by a small groups of people who have shares and a Public limited business is owned by private individuals by shares bought and sold on the stock market. A charity is a business with the purpose to help the public, the government is a business owned by the government and lastly a sole trader which is a business owned by only one person.

Forming a business entity requires a great deal of knowledge before any decision is made. There are advantages and disadvantages to each entity and without proper understanding of what they are, individuals could make costly errors and forfeit crucial perks that would be in the businesses best interest. In the situation in New State, Alex, Bill, Carl, and Devon have inherited their father’s operating organic farm and seek advice, in regards to which form of business organization would best fit their particular criteria. They have emphasized their immediate concerns, wants and needs from a business standpoint, but also stress their strong faith to uphold and operate in accordance with the Christian worldview. Their criteria is as follows, (1) create an entity which averts formalities or complexities, (2) develop a structure allowing cousin Xavier to handle the day-to-day, (3) minimize taxes on the entity, (4) avoid any personal liability, (4) keep business in the family only, (5) remain in accordance with the Christian worldview, (which will be the final topic in this discussion). After reviewing all criteria, it will be advised that forming a limited liability company (LLC) and electing for an S corporation status would be of best interest for the family. Discussed below, is the strengths and weaknesses of each form of business organization as it applies to their unique situation, to help better understand why an LLC/S corporation, is the best form of

There are many different paths people can take throughout their lives. In the novel, Fifth Business by Robertson Davies, the main character, Dunstan Ramsey, takes the path of the Canadian hero. There are many different steps to be taken by the hero and Dunstan Ramsey follows his path by completing each step.

A partnership is the best form of business given Shania’s situation. She has support from all angles that want to help her Christian coffee shop be a success. A limited liability partnership is best suited for Shania because of her possible partnerships with her husband, sister, and neighbor. According to the Limited Partnership (2015) article, this form of business is a “voluntary association where one or more partners contribute capital only, and those partners play no role in management.” Her husband wanted to make a contribution to Shania’s business but not in the lane of management, so by using this partnership he can still contribute his capital and maintain his partnership. The liability is limited to the amount of capital that the partner contributes. As a “silent partner” Marvin can make investments with the company, but not have any voting power or control over day-to-day operations.

Craig and Micah should have turned to their families to raise investment capital much earlier; this is because most of the family members particularly parents are willing to invest in their relatives because of love and care. In addition, family members do not scrutinize minor details in the business plan, or demand huge stake or returns in a given investment. However, it is important to note that; asking for funds from such individuals presents some risks such as (Masulis, Pham and Zein, 2011).

Sharma, et al (1997), proposes that business must incorporate into the strategic planning process to ensure continuity and stability operations when the time comes to put succession into action. There are four issues that need to be addressed with family succession: succession planning, succession timing, interest of the next generation, and who chooses the successor. The issues must all be determined and planned for while developing strategic plan for the family business so that goals and quality service and products are achieved and the business makes a name in the community.

Finally, Partner 3 is forward thinking and would like to ensure a transition of their stake in the business to their children. While this is possible, it may result in a dissolution and reestablishment of the partnership for the children to inherit a stake, combined to equal that of their parent. However, while forming the business, I would suggest adding to the partnership agreement a mechanism to transfer the interest of one partner to another, or multiple persons. This would have to be agreed upon during the formation to avoid a dissolution of the partnership in the future.

Underlying issues such as high federal and consumer debt may threaten long-term health of the U.S. economy

After reading the case of Alex, Bill, Carl, and Devon’s business, me being their accountant, a type of business I would suggest them will be a Liability Limited corporation. Based on their needs LLC would be a perfect form of business for them. As their company was sole proprietorship ran by their dad, LLC offers some advantages of a corporation, as well as some advantages of a sole proprietorship. “A limited liability company, commonly called an "LLC," is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.” (Nolo, 2014, n.a.) The characteristics of LLCs and a partnership company are somewhat similar as they both provide flexibility to the management and also the benefit of pass-through taxation. The Owners of an LLC are called members. As most states do not have any limit on ownership, members can be individuals, companies, other LLCs and foreign individuals. There is no limit on the number of members in LLC. Some LLC also have only one owner, which is called a single member, and it is allowed in most of the states. Most states do not restrict ownership, and so members may include individuals, corporations, other LLCs and foreign entities” (irs.gov, 2014)

In order to properly plan the business that John and his wife are considering, they will need to consult a lawyer, multiple suppliers, and the municipal authority of the area. Consulting with these professionals will clarify that their business is created in a manner that protects them from the potential legal implications of taking on a business venture of its magnitude. Consulting a lawyer first would be the way to start. Meeting with a lawyer is necessary for first deciding what type of business they should start and what type of legal protection they are looking for, which in this case a C Corp would be a great recommendation.

Taking the owners backgrounds into consideration, a limited liability company would be a better idea. When forming a limited liability company, they would have to file an article of organization with the secretary of state but the company would still be structured as a partnership. Main advantage would be that the owners are not personally liable

Introduction The Quaker Oats Company, officially formed in 1901, is currently undergoing massive reorganization, which will dramatically change its position in the industry. Over the last four years, Quaker Oats' returns have been consistently rocky. Quaker unloaded Snapple, its ice-cream toppings and condiments business, and its frozen bagel business 1997. The company has turned to an emphasis on its high performing products such as Gatorade and bagged cereals. Gatorade accounts for more than one-third of the company's total sales and claims over 80% of the US sports-drink market. Quaker is also a leading producer of granola bars, rice cakes, pancake mixes and syrups, and value-added

(B)So i think partnership would make the most sense because they all have skills that the other people need to succeed in this business.I would say give each Aaron, Mateo, and Justing each 30% and try to involve a 4th partner who gets 10% but hi only job is funding.

This brings us to the possibility of a partnership. Set-up expenses are still at a minimum, and the legal documentation required to form a partnership is simpler, more straightforward, and less complicated than what is needed for incorporation. Partners have more motivation than the investors that might be scrounged up in a sole proprietorship or a larger more expansively financed incorporation; as they directly share in the profits and most immediate business decisions. There are improved growth capabilities, something much more limited in a sole proprietorship, and generally it is easier to procure capital and further funding for financing a business operating under a partnership than it is for a sole proprietorship. The funding for startup costs and expansion is pooled with the resources of all partners. Multiple skill sets are brought to the benefit of the business as well. There is more flexibility found in decision making then with the multiple and varied investors of an incorporation. For this particular scenario, with the limited funding and growth costs of an individual family on a budget, but potential to tap a saturated market and create an unlimited amount of demand, and thereby an unlimited amount of profit, a partnership would be a vast improvement for the possibilities of “The Thunker” over a sole proprietorship.