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. Due to their small size, it would be an excellent idea to start a C Corp because the double tax would not take …show more content…
Also if they started a corporation it would involve them filing paperwork with their state government. Acquiring their contractors license and realtor license would be the first step without a doubt. When building in most rural areas there are pretty heavy zoning regulations that the building permits would help protect them from. Building in an area that is not permitted has many serious repercussions such as being forced to pay fines, or even being forced to close the business down. Some of the up-front costs the couple would face would be fees regarding getting their contractors license and realtor license. Also, they would have to pay a lawyer to help them file the proper documentation. There is also a fee to file for a corporation with the state government. All of these fees should be considered before starting the process of construction. To begin the business, the couple will need to create many legal documents. The list would include, company bylaws, documentation with the state regarding the formation of the company, and possibly documents regarding investors stating what they get in return. Another example of a document they may need to create would be contracts with suppliers, and potentially even people looking into buying the homes before they are constructed. Making sure all proper documentation is present is the easiest way for small businesses to avoid unneeded
Betty Wilson’s venture of opening a Christian Coffee House in Belmont, NC, presents her with abundant opportunities in selecting a business form. She is considering the following types of entities: 1) franchise, 2) sole proprietorship, 3) partnership of some sort, 4) corporation of some sort, 5) LLC, or 6) even as a joint venture. We will briefly explore each business option and give Betty concise recommendations as to what business form to pursue as well as what business partners to engage.
The question at hand is whether or not the brief exchange held between Jay and Emma led to the formation of a legally binding business entity. Now of all the different entity options available, the only viable option this exchange could possibly represent is that of a general partnership. A general partnership is relatively easy to form and doesn’t necessary look at the intentions of the individuals to form a partnership, but rather their actions. So as long there is a desire to carry on a business as co-owners for profit, there really is no other formal requirement involved in forming a legally recognizable partnership.
(TCO 4) Sally Toone wants to start a new business, and hopes to attract several hundred investors to help finance its growth. She considered forming a C corporation, but wants to have more flexibility about how the new business will be taxed. She also wants to offer investors limited liability. Sally can satisfy her objectives by setting up a(n)
a general partnership. It should be noted, however, that the specific steps and requirements to start an
Jeb and Josh can be employed by their LLC. The tax deductions available to the LLC are plentiful: medical expenses, pension plan, business trips and entertainment. There are more sources of capital for an LLC than for a sole proprietor and partnership. With an LLC Jeb personal creditors’ cannot sue the company, and Josh is not liable for Jeb’s personal obligations. This business should protect the members’ personal asset from a lawsuit resulting from Jane’s injuries.
Paula Green, a U.S citizen and our client, is preparing to expand her business into landscaping field. Before the expansion, Paula already has already been operating the Green Thumb Nursery whose total assets with a $260,000 adjusted basis and a $500,000 FMV. To avoid the risk of paying unlimited debt, Paula plans to change business form from sole proprietorship into corporation. And Mary Brown, a U.S citizen and the other client, would like to invest $250,000 into this corporation.
My initial recommendation to you was to establish a C Corporation for your business. Doing that means there are two main ways for you to get money from the
In regard to the absence of drug screen results, all new hires must take a drug screen at an approved location within 48 hours. One solution would be to contact the new hires by phone and email informing them a drug screen is required and must be completed within 48 hours
Over the years the couple has helped business owners form over 100,000 corporations and LLC's in
This business is a general partnership, meaning that both owners are responsible for management and the financial obligations of the business. Also, it’s easy to start, mainly due to the fact that each partner pays a minimal fee for the fees that are applied to new businesses. It’s easy to manage, due to many different ways each partner handles their responsibilities. There’s a lack
1/ For starting a small business with Roberto, I strongly believe our business organization will be following to Limited Liability company, LLC, which can be advantageous for providing protection to partners and investors. Both of us have equal rights to manage and have agency to contract for the company. Because of having the first small business together, our business organization do not allow for public offerings and stock sales that we can be easy to control. Also, we have to find one of the best farm for giving the milk, egg, and others organic supplies to make our products which means we need to sign a contract with them for every month.
........................................................................7 7.0 Financial Plan .........................................................................................................................................7 7.1 Start-up Funding ...........................................................................................................................7 7.2 Important Assumptions ..................................................................................................................8 7.3 Break-even Analysis ......................................................................................................................8 7.4 Projected Profit and Loss ..............................................................................................................9 7.5 Projected Cash Flow....................................................................................................................12 7.6 Projected Balance Sheet .............................................................................................................14 7.7 Business Ratios ...........................................................................................................................15
2008). In September 2002, Kozlowski and Swartz were accused of stealing more than $170 million dollars from Tyco and swindling $430 million in the sale of company shares. Tyco’s former chief corporate counsel Mark A. Belnick was also found to have forged business records to hide over $14 million dollars that he received in company loans (Timeline of the Tyco International scandal, 2005). The first trial began in October 2003, which was declared a mistrial in April 2004, because a juror said she received a letter pressurizing her to convict Kozlowski and Swartz. The second trial began in January 2005 and ended in June 2005, with Kozlowski and Swartz found guilty and in a separate trial, Belnick was freed of all charges against him (Timeline of the Tyco International scandal, 2005).
The advantages to a LLC are: 1) Reduction of personal liability. A sole proprietor has unlimited liability, which can include the potential loss of all personal assets. 2) Taxes. Forming an LLC may mean that more expenses can be considered business expenses and be deducted from the company’s income. 3) Improved credibility. The business may have increased credibility in the business world compared to a sole proprietorship. 4) Ability to attract investment. Corporations, even LLCs, can raise capital through the sale of equity. 5) Continuous life. Sole proprietorships have a limited life,
A la hora de analizar este caso, aplicaremos lo visto tanto en la nota técnica de “valoración de empresas. Un resumen” como lo comentado en el propio caso sobre las características de la evaluación de proyectos de inversión hoteleras.