Selecting A Business Form Is A Big Decision For All Companies

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Project #2 Eric Kitts Liberty University Abstract Selecting a business form is a big decision for all companies. Those involved in the entity need to decide what is important in terms of how liability, taxation, time devoted to the company, e tc. There is no right or wrong combination of factors to consider when deciding on the business form that is right for your company. In this case, I will highlight the key attributes of the partnership, corporation, and limited liability corporation (LLC) for potential clients interested in forming a new entity after inheriting an organic farm from their father. They are interested in a business form that will limit liability and reduce their tax burdens, but they are also concerned about…show more content…
He will continue to manage the operations of the orchard, vegetable gardens, grain fields, trout pounds, poultry operation, as well as the fall corn maze and pumpkin patch that have been a staple in the community for years. The five family members are all Christians and want to set up the company in a way that pleases the Lord, so they have came to me for my guidance as to how to accomplish this goal. My goal is to inform Alex, Bill, Carl, and Devon of the different business forms, so they can feel educated and informed when making this important decision. I want to thoroughly explain Corporations, Partnerships, and Limited Liability Corporations to them, so they are aware of their options. The siblings’ father passed away after operating a successful sole proprietorship for many years, so there will be a definite change in business forms. A sole proprietorship is no longer an option due to the amount of members. Fleischman and Bryant (2000) explain that this form of business “is an option only for a business with one owner” (p. 2). I aim to advise the family in a way that honors God and allows them to set up this business in a way that honors God as well. The Bible instructs us all in Colossians 3:23-24 that “whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ” (ESV). The
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