Mrs Needle With Advice On What Legislation She Should Look Out For

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.

Limited Liability Company (LLC) combines the tax advantages of a partnership with the limited liability aspects of a corporation. LLC’s are governed by the Uniform Limited Liability Company Act (ULLCA). All members of the LLC enjoy limited liability unless there is serious misconduct is committed by said member(s), or a member fails to follow through on an obligation. All this should be outlined in your preformation contract. You will have more flexibility with taxation and options on how to manage the company. It would be advisable to also have an Operating Agreement. This will dictate how management will be hired and fired, division of profits, how to transfer interest in the event a member chooses to opt out or dies. What steps to take in the event of dissociation of a partner, and if it causes the dissolution of the LLC. Most importantly how the members vote in the LLC. The weight of the members vote is in accordance with the member’s capital

Anytime you start up a business or you take over another company there are multiple things you must do to get started. One of the major things one must do is decide on what type of ownership you want. There are many different types of business ownerships out there, but some will benefit you more than others. In this paper you will be learning about the difference two types of business ownerships you can have. The main point of the paper is to help someone that’s going to become an owner of a business be able to do what’s best for not only them, but also what will be best for the business. Sole trader ship and partnership are the two best ownership because they will benefit the owner and business more by going by what the company stands for.

There are no corporate tax payments, for she’ll claim and pay the taxes on income from the ‘Charming Place” as part of her personal income tax payments. Also, in a proprietor, there are bantam legal costs to incorporate her business into a sole proprietorship. Best of all there are diminutive formal business requirements.

There are four primary forms of entities available to Penelope, Mark, and John. Notably, they include a limited liability company option, partnership, or a corporation (especially S-Corporation). The sole proprietorship option is not ideal in this case as it is run by an individual. In most cases, it is limited to sole benefits (Schwidetzky & Brown, 2015). However, the three are highly specialized and knowledgeable in their areas of expertise. Besides, the liabilities associated with sole proprietorship are personal. The

You brought up a good question about how IV drug users currently obtain needles. One possibility is by theft. Needles are often reused and needle exchange programs will have a positive impact on reducing the spread of disease by sharing needles. I found a website that instructs users in methods to clean needles, http://www.friendtofriend.org/drugs/needles.html before reusing them. The Friend to Friend webpage does suggest that users give up their addiction, but provide methods for cleaning needles as an option for those individuals who do not have access to clean ‘works’.

Tinker & Tailor’s Home Security Service: “The limited partnership form of business organization was primarily created to address one of the worst shortcomings of the traditional partnership form: unlimited personal liability for financial obligations incurred by the partnership” (Seaquist, 2012). Those involved in a limited partnership are in a unique situation in that they are only legally responsible for their investment in the partnership

Your current ownership structure is a partnership with Sue, together running your business, Outdoor Adventures. A partnership is a group of persons carrying on a business with a view to profit. In order for your business, Outdoor adventure, to continue operations, ultimately it needs to make a profit. Running at a loss will make it impossible to continue operations. From previous statements, it read 3 years ago, that you were looking to expand/increase the capital for the business. An advantage of a partnership does consist of being able to generate more capital than a sole proprietor so that a sole proprietor business that has reached the limit of its owner 's ability to fund its future can continue operations with the injection of additional capital from a partner who will share the risks and rewards of the business. Outdoors Adventures will also benefit from Sue entering the business, as she will bring different skills and ideas, steering the business in many differing paths allowing it to grow in more areas. She now can allow you to specialize in different parts of your business as she now takes on some responsibilities for example on the Zip Wires in particular. However, partnerships do have many

You also mentioned that an LLC limits the personal liability of each member. In addition, taxes are paid personally and not as a corporation. Though these are some great points as to why Shania should choose and LLC for her business, I concluded that a corporation would be the best business method for Shania. The reason why Shania should make her coffee business into a corporation is because, primarily, a corporation has multiple opportunities to increase capital. For example, she’ll be able to sell shares of stock and create new forms of stock. Most important, investors will not have to be worried about being personally liable for any of the corporate debt. There’s also an advantage in transferring ownership interests compared to sole proprietorships and

Three sisters, Kathy, Linda and Valerie Montgomery started out with what looks like a hobby, without knowing it would develop into a legitimate business of today. These three sisters had adopted an unconventional approach to the growth of their business start-up, by buying materials at a bargained price and producing them into shirts. This approach produced enough revenue growth (on a small scale) but depended largely on loans to finance their business; but with the increase in the firm’s employee and bad economy, they were faced with series of financial problems which resulted into changing their approach to business, by re-organizing the method being used to carry out the business. The company was

Being an investor in today 's society requires a substantial amount of capital funding. Due to our company seeking to obtain $2-3 million in funds, the company will need to establish other ways of fundraising. Such fundraising methods can include, introducing wholesale investors, small offer funding, crowdfunding, peer to peer funding, and obtaining close business associates and relatives. However within these types of funding, there will be various exemptions which may apply. Such exemptions can detriment the way we do business and neglect certain funding aspects which is controlled by the Financial markets act 2013 (FMCA). This will regulate all business entities such as sole

There are a number of forms of ownership that the business can take. The main forms are sole proprietorship, partnership, Limited Liability Corporation, corporation and S corporation. There are advantages and disadvantages to each of these forms that will be discussed in this section. A sole proprietorship essentially has the person as the business. In this situation, the proprietor bears all of the risk involved in the business. Business income flows through to the proprietor's personal taxes. For some individuals there are tax advantages, but for many the appeal of the sole proprietorship is its simplicity. The IRS defines a partnership as a relationship existing between two or more individuals who joint to carry on a business. Partners divide income according to their own agreement and that income flows through to their personal taxes. Partners also have a high level of liability for any legal action that befalls the company.

One major disadvantage of the partnership is taxation, partners will pay the tax same way as a sole trader. Therefore they will pay the corporation tax in addition to this they will have to pay income tax. Another disadvantage is liability partners are still subject to unlimited liability same with a sole trader if the business can’t pay its

Those legal structures are: sole trader,partnership,partnership with limited liability(LLP),private limited company (LtD) and public limited company (PLC).

When Haili and John registered a proprietary company or form a partnerships, there are some legal rules and regulations attached to each of the type. To face those rules and regulations appropriately, a proper consideration is required by the each party.They have to know that a proprietary company is a smaller form of a public company when a partnerships is a form of organization when two or more people gather and do a business together (Pearce 2015). Consideration from the party comes from the management of the company and the willingness to use their personal debts. When Haili and John wants to be a director of Sparkle Pty Ltd, they can form a partnerships or a proprietary company. A proprietary company is a small company under the Corporations act 2001 (Cth), thus a partnership is only bind under The Partnership Act 1985. If Haili and John wants to manage the organization and be liable for the debt that arise from the organization, they can form a partnerships. Therefore, a proprietary company is separate legal entity and the amount of each party are liable for only the number of shares they own on the company (Pearce 2015). There is another form of partnership called limited partnerships that the members can have limited liability but cannot manage on the partnership (Pearce 2015). According to Seago and Horvitz (1980), a partnerships may have a characteristics of minimum 2 or more members and each party is a liable party if the partnerships goes