Selecting A Business Form Is A Big Decision For All Companies

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.

1) Describe the basic features that distinguish the four basic forms of business ownership sole proprietorships, general partnerships, C corporations, and limited liability companies.

5. (TCOs 1, 2, 8, 9, and 10) One of your best individual clients is thinking about starting up a new business, and he is seeking your advice on which business form he should select. In particular, he’s trying to decide whether to operate the business as a partnership or a C corporation. Explain to him the significant tax and nontax issues that will arise from choosing each of these entities compared to the other, including how

A Limited Liability Partnership Alternative Security Provision transmittal form must be filed as well. Once these documents are approved, the Secretary of State will return stamped copies of the forms as well as a Certificate of Registration to the partnership.

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 siblings must know that regardless of the business form they choose to operate by, they will be held accountable for this company and its activities. Even though their goal is to choose a business form with limited liability and lower their tax burdens, they will still be responsible to pay taxes and debts owed by the company. Proverbs 27:17 says “Iron sharpens iron, and one man sharpens another” (ESV). Alex, Bill, Carl, and Devon will be called upon to sharpen one another to display Christ to others through sound business practices.

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.

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

In setting up a new business the first step is setting up the best business structure for the need of the business. There are many different things that need to be looked at in order to determine the correct entity that will be used. Will there be partners is a big question in this determination, another questions which is the most correct for the business legally. Another consideration needs to be the legal liability as well as the tax liabilities in considering the best choice for the entity of the business.

In addition to business risk factors that must be researched, there is more information that should be disclosed to David and Chuck. They need to review previous years’ income statements. Looking over them will show if this business is growing or not. If there happens to be a decline in the net income over the past few years, Bibles-R-Us may not be a wise business purchase. This shows that either the Bible buying market is shrinking or people have been purchasing the competitor’s Bibles. In order to become more informed about Bibles-R-Us, David and Chuck need to know who is buying the Bibles. Are they sold online, out of small retail bookstores, or large wholesalers? Information on these contracts could show a risky market base if the Bibles

Much like most family businesses, GLORY INDUSTRIES, holds several competitive advantages. The ability for GLORY INDUSTRIES to capitalize on its unique advantages begins with trust. CEO, Myrtha Vilbon, and Commercial Director, Nathalie A. Clodomir are related. Mother, Myrtha Vilbon and daughter, Nathalie A. Clodomir, demonstrate the truest nature of family-ownership-management interaction. With the trust that comes from being a family, Myrtha Vilbon trusts her daughter Nathalie to make decisions as Commercial Director and to negotiate and secure deals with local wholesalers.

Legal Structure of a Business Orgnanisation Business organisations are the different legal forms a business can adopt. The key distinction is that some businesses provide limited liability for any debts the business incurs. Others have unlimited liability - which obviously doesn't [IMAGE]Unincorporated Incorporated Up Arrow Callout: Sole-trader Up Arrow Callout: Partnership Up Arrow Callout: Private Limited Company (ltd)

The choice of legal status for setting up a new company can be complex and is dependant on various tax, commercial and legal considerations (Accountingweb, 2014).

The business will be a Limited Liability Company with two members, a managing member and a non-managing member. The LLC form will protect the members from lawsuits brought by unsatisfied customers (Melvin, 2015), which can become costly in the interior design field. At the same time the LLC will prevent the double taxation of company profits (Melvin, 2015), giving greater monetary reward to the members. Because of this more money can be invested back into the business.

Wayne Grudem, the author of, “Business for the Glory of God”, states that there are many ways that a Christian can use business to glorify God. Some of the main ways are Ownership, Employment, Profit, Money, Productivity and Borrowing and Lending. All of these things can bring glory to God in the way they mirror the nature that is God and His provision for man. God gave humans ways to provide food, clothing and shelter, not only for themselves, but for others also. He intended us to be a component of a community, one with an economic system for sustainability. The capability to govern one’s own business and to set into view the mandates in that it is vital to the well being of any sturdy economy. Today’s marketplace has consumers that have

As mentioned above, the business must be registered either as a limited company or a limited liability partnership. Different types of companies have different requirements and application documents needed. More information will be discussed below.