Sole Proprietorship And Limited Liability Company

• LIABILITY – All liability rests in the sole proprietors shoulders. There is no hiding from liabilities of the company for the owner, nor is the business sheltered from liabilities of the proprietor. • INCOME TAXES – Since the owner and his/her business are one in the same, all income is then treated as personal income to the

INCOME TAXES – As a sole proprietor all business income or losses must be reported as personal income tax. The business itself is not taxed separately.

The Home Depot (THD) is the second largest retailer (besides Wal-Mart), and the largest home improvement store in the world (THD, 2012). The company has not had any need to recruit employees in the past, but recently they have had an issue fielding applications for qualified personnel to work in their kitchen planning departments inside the stores. The issue is not that there are no willing people to fill the spots, but that THD has been unsuccessful finding people who have the qualifications to fill the positions. Associates can be recruited from other areas of a store, but the training process is extensive and expensive, so the company is looking for means to fill the positions with more qualified individuals. Thus, the training process would be shorter and less expensive, so the employee would be in the position quickly. This paper outlines a recruitment plan for the position.

* The owner is responsible for filing taxes and is allowed to file taxes as part of their personal income taxes.

Income Taxes: The owner of a Sole Proprietorship pays taxes in the earnings of the company as personal income.

Change occurs all the time in organizations, it is the one thing that is always consistent. In order for an organization to stay relevant they must re-invent themselves in order to continue to satisfy their customers’ needs. My goal in this paper is to share about an organization called Acme Fireworks and to determine if the laws that these businesses will be governed by, analyze the contracts, apply the five essentials elements of an enforceable contract, explain the potential liability if a spectator is injured, discuss the different employment types relevant to this company, and explain why they should not operate as a sole proprietorship.

Salta Company installs a manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the units of production method:

Per your request, we have assembled a report with a legal and statistical evaluation of the problems facing Acme. If you have any questions, feel free to contact us at any time.

At Empire, Inc., the turnover rate is very high among assembly workers. Supervisors in the production department have indicated to the personnel department that they do not have time to conduct a supervisory interview with the large number of applicants that are processed to fill assembly-line openings. As a result, the personnel department’s employment specialists make the final hiring decisions.

Fireworks are one of those things that everyone loves to see every chance they can get. Acme Fireworks wants to start showing fireworks on the regular basis, but it will cost more to hire more people for the labor, insurance, and the service of setting off the fireworks. I will determine if the contract with the businesses will be governed by common law or the Uniform Commercial Code and explain why, analyze whether the owner formed the contract with the business and apply the five essential elements of an enforceable contract. I will explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display, discuss the difference employment types and relationships relevant to agency law and analyze the advantages and disadvantages of each type specific to Acme Fireworks. I will also explain why Acme Fireworks should not operate as a sole proprietorship and I will recommend a new business entity and provide rationale to support my recommendation.

“Liabilities are debts: money you owe. Every business carries some liabilities—for example, ongoing payments to suppliers, rent for your office, compensation to employees, or fees for contractors” (Mancuso, 2014). Added liabilities may result if a business is ravaged by a fire or flood or if the business owner(s) become the victim of a lawsuit—for example, a patron, client or customer decides to sue your company after hurting themselves on company property. It is the intent of this paper to examine the role and responsibility of liability in different types of businesses from sole proprietorships to

Is the most common business type, where the business is operated and owned by a single individual. In this type of business, the sole proprietor provides capital, does not share profit or loss and runs the business alone. As such, the business and the owner are indistinguishable for tax and legal purposes (Dlabay, 2011). To differentiate this business from other business types, a sole proprietorship is discussed under the following characteristics.

Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide rationale to support your recommendation.

The McGee Cake Company, currently operating as a sole proprietorship, may benefit from forming a limited liability company (LLC). An LLC is a comparatively new type of business entity. With an LLC there are reduced legal formalities in comparison to setting up a corporation. In addition, unlike a corporation, the McGees could set up an LLC yet remain the sole owners of the company. Another advantage as the owners of an LLC, the McGees are taxable only for personal income and not for the income of your LLC. Therefore, they would not pay double income tax. An LLC also has a long

The concept of a company being a separate legal entity is the most striking illustration in separating the company from its owners. A paramount principle of corporate law is that no shareholder or member of a company is made liable for the obligations incurred by such incorporations A company is different from its members in the eyes of law. In continuations to this the opposite also holds true in the sense that neither can the company be held liable for the acts of its members. It is a fundamental distinction that a company is distinct from its members.