In response to your questions regarding the decision of changing the organization of your business, you spoke on several concerns that need to be fully addressed. At this current time Jim’s Woodworking is a sole proprietorship which right now offers no liability protection for any of Jim’s personal assets. It needs to be noted that all limited and general partnerships, while offering many very enticing benefits, have no liability protection for personal assets. In order to protect all of Jim’s personal assets the best way possible we should focus on an S Corporation as the potential form for reorganizing Jim’s business. It will not only protect Jim’s personal assets in the event the company is sued or anything bad may take place, but will also
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
This memo is intend to present appropriate treatment of the ARO estimation problem experienced by the Lack of Information (LOI) based on the findings from interviews with all 50 of the warehouse managers and on-site visits at each of the 50 locations of its warehouses countrywide. The onsite observations search for any evidence of damages in both the on-site property like the roof, walls, floors and general conditions. The interview with the managers obtains information about the characteristics of the warehouses that are not readily observable. The information obtained is very important in the preparation of the fiscal
Ever since Angela has become the 100% owner of Wheeler she has concerns about some possible negative goodwill that Wheeler might have. She is also worried that the corporation might not be employing the best practice to dispose of hazardous waste; she fears that a personal liability might arise from that practice. Similarly, Angela does not like the idea of the Texas franchise tax that Wheeler is subject to. Because of the above concerns Angela is contemplating the idea of liquidating the corporation and reorganizing the business as a sole proprietorship.
In Task 2, the owner is correct in his need to move away from a sole proprietorship and into an entity where his personal assets will be shielded in the event of a business failure. There seem to be three major ways to remove this liability, which include a C-Corp, S-Corp and LLC. For this situation, I would recommend an LLC for the business owner and will explain why it will benefit him in the issues of liability, continuity, income taxes, profit retention and control.
Part I: Discuss the various forms of organization that are available to Penelope, Mark and John. There are a few different options from which you can chose to organize your business under. For example: partnership, LLP, S Corporation, C Corporation for which I know you are all familiar with. It is my duty to give you my own educated and unbiased opinion to which would be most beneficial to all of you.
I would like to take this opportunity to share with you, three possibilities for your business formation. Making the proper decision on which formation to choose can be a daunting task and I am pleased that you have chosen ABC Accounting to assist you in this decision. One of the main criteria you provided was the protection of you and your family from personal liability. Each of the three options that will be discussed, provide the personal liability protection and will give you the ability to make the proper decision for you and your business.
Chris and Sue are 50 percent shareholders in BackBone personal service corporation. Backbone provides chiropractic services in four separate offices, in four small towns: Troy, Union, Vista and Willow. Chris is the main chiropractor in the Troy office, and Sue heads up the Vista office. Charlie, the main chiropractor in the Willow office, does not see eye-to-eye with Chris and Sue on management styles. Charlie is highly competent and well-liked by patients and therefore indispensable in the eyes of Chris and Sue. Chris and Sue may be willing to give Charlie control of the Willow office, but do not want to lose the profits this office adds to BackBone. A corporate reorganization seems to be a good alternative.
To that end, in 1898, Darrow accepted the defense of Thomas I. Kidd of the Amalgamated Woodworkers’ International Union. Kidd was charged with criminal activities related to his strike organizing efforts at the Paine Lumber Company in Oak Brook, Illinois. Specifically, Kidd was charged with criminal conspiracy to interfere with the business of the lumber company by organizing a strike. In exchange for the AWIU agreeing to publish his closing argument after the trial, Darrow accepted the case for a lower fee (Farrell, 2011).
The senior executives of the Sunrise Senior Living corporation, to include the Chief Executive Officer, Chief Financial Officer, and Chief administrative Officer, are all White males. The remaining fifteen key corporate leaders consist of 67% White males and 33% White females. The leadership structure within Sunrise at Fair Oaks is more diverse and consists of seven people; four males and three females. One of the male leaders is African American and another is Asian. The Executive Director, whom I discussed some of my facility reflections with on Sunday, April 23, 2017, is a White forty-something male. Beyond the key leaders, the workforce at the local facility is very diverse. There are approximately 100 employees. Minority
As far as I can tell, Jagerson has not made political contributions to federal or state candidates, PACS, or parties. Additionally, she has not publicly affiliated herself with political issue or candidate campaigns.
Lumber Liquidator is one of the biggest hardwood flooring retailers in United Stated of America. The company starts in 1994 when Tom Sullivan, a building contractor, decided to purchase the excess wood that bigger contractors had to resale it.
Guillermo Furniture are considering their potential future, there are three choices; to continue as they are, to adopt a high tech strategy or finally to adopt a broker strategy. The way that the strategy is implemented will also depend on a decision concerning the structure of the firm and whether or not it will remain as a sole proprietor business. If the firm does not remain as a sole proprietorship it may become either a partnership, or a limited company/Corporation. If company was to become a partnership Guillermo need to find a partner, and was then share ownership and risks. However, it does not appear there only likely partners, furthermore with falling revenues undertaking a strategy that will require sharing of revenues is unlikely to be acceptable. If Guillermo forms a Corporation there are some advantages, a corporation will have its own legal identity, which will mean Guillermo will not carry the risk risks associated with the business personally, they belong to the business. However, setting up a corporation can be costly, and a new corporation may find it difficult to borrow money. If the organization needs to borrow money in order to fund the development, it is highly likely that Guillermo will be asked to provide personal guarantees, which will undermine the protection afforded by the corporate veil. Therefore, it would appear there are no significant advantages to changing the existing ownership
The Cartwright Lumber Company had been found in 1994 as a partnership by Mark Cartwright and his brother-in-law Henry Stark. Later in 2001, Mr. Cartwright bought out Stark’s shares and incorporated the business. Now, Mr. Cartwright is a sole owner and president of the company. The business is located in the Pacific Northwest region and does the retail distribution of lumber products in the local area. Plywood, moldings, and sash and door are some of the typical products of the company.
Handle the situation and do not let it get any more out of control than it currently is. This sounds the brewing of a perfect storm for customer service and relations. It is ultimately reflecting poorly upon the company. The V.P. should make the distributors and retailers know that this behavior is unacceptable and Handy Andy does not endorse this kind of business in relation to its valued customers.
The legal fees amount of RM 500 is cost associated with issuing bond and should be recorded as “deferred charges” which is an asset analogous to prepaid