What You Are Unsure About For Your Business And Informing You And Educating You

There are many pros and cons for starting a partnership. A partnership is simple, inexpensive and easy to start. Partnership's formalities are relaxed where there are no required annual meetings, as compared to other formations. Unlike other types such as a corporation, a partnership is not required to file annual financial reports with the state and not required to maintain documents. Most importantly, partnership enjoys favorable tax treatment as a passed-through entity and do not have to pay minimum taxes that are required of LLCs and corporation. However, because partnership formation is relatively simple, there is greater risk of disputes among the partners due to poor organization. Most importantly, the partners in a partnership do not enjoy limited liability. They are personally liable for the partnership’s debt, losses, and other obligations. Under the agency theory, the partnership and a partner may be held liable for other partner’s conduct. Thus, it is imperative to anticipate potential issues that the partnership may be exposed to and reduce it to a written agreement. The agreement should address how partnership reaches a decision and how to resolve a dispute when it arises. In addition, the agreement should layout partner’s termination as well as how to wind-up in the event of partnership dissolution.

A partnership is the best form of business given Shania’s situation. She has support from all angles that want to help her Christian coffee shop be a success. A limited liability partnership is best suited for Shania because of her possible partnerships with her husband, sister, and neighbor. According to the Limited Partnership (2015) article, this form of business is a “voluntary association where one or more partners contribute capital only, and those partners play no role in management.” Her husband wanted to make a contribution to Shania’s business but not in the lane of management, so by using this partnership he can still contribute his capital and maintain his partnership. The liability is limited to the amount of capital that the partner contributes. As a “silent partner” Marvin can make investments with the company, but not have any voting power or control over day-to-day operations.

The partnership is a form of business that could be possible in Shania’s scenario due to the other individuals showing interest in the business idea. She can create a partnership with one or more persons and sharing of the profits is divided equally, unless an agreement states otherwise (Kubasek, et al., 2015, p. 423). Some of the benefits of a partnership are the ability to raise more capital and to share ownership responsibilities (Block, et al., 2015, p. 9). With committed partners it is possible to have a successful partnership.

There are two main types of ownerships: sole trader ship and partnerships. Some may say that the only difference in the two are that the business is either ran by one single person or by two or more people, but in reality there is a big difference. For example, a sole trader ships could be a business like a market stalls, hairdressers or corner shops; partnerships could be a business like a solicitors firms and accounting firms. Also, while deciding which ownership is right for the business you have to look at the over view of what type of business you’re getting into. Sole trader ships only financial income is from the business and/or bank loans (types of business structures). Partnerships can receive larger

Enclosed is the Justification Report covering information related to different types of entities that could be chosen to establish a business. Furthermore, the report explains in full details the advantages and disadvantages of each business entity, and how those factors could fulfill the needs of each particular individual.

Another business structure to establish is Limited Partnership, which is similar to the partnership with a slight difference where it formed with at least one general partner and one limited partner. The general partners have the same obligation as partners in a general partnership; however, limited partners have limited liability to the extent of their contribution. The advantage of this business formation is the limited personal liability for individual partners for the acts of another partner within the organization. It has the same tax consequences as a general partnership. One important positive aspect is management and control aspects of the organization could be divided or separated among partners. It’s shortcoming, a general partner is still personally fully liable for the debts of the business. If the limited partner wants to become active in the business, he/she may assume the personal liability obligation.

First I had to decide what business entity would be best for my business? My initial thought was to create a sole proprietorship. However, based on some initial research, I realize immediately that this type of business will take a team to be successful. In addition, I was not interested in my business being taxed as personal income, and I was not interested in assuming all liabilities if I were to be sued. The next thought, was to create a partnership with someone who would have the same interest in the business that I have. This individual would assist in investing, deciding which location would be best for our business, and also to bring additional skillsets to the business. Again, the only down fall for this type of business entity would that I would be personally liable for any decision my business partner makes, and that my personal assets would be at risk. After reviewing these two business entities and

Again in everything there are pros and cons. The pros to a partnership is that obtaining a partner is easy, when there is more than one owner this increases financial stability allowing each partner to contribute funds and potentially increase their borrowing capacity. Depending on the business and its need for additional partners this could increase employee retention because employees will see an opportunity to one day be a partner.

Considering, small amount or lack of sufficient fund with my client, I will like to advise him that sole proprietorship business might not be good and appropriate and thus, I Would like to suggest him to form a partnership business. As we know that Businesses operating as an Sole proprietorship business is beneficial for the full control over the business structures such as in management, decision making etc, but in this scenario It seems that as per the clent funds its not well worth for

participating in management, including having signing authority for contracts and bank accounts, and enjoying access to information regarding the business

Cora and Caley will have some disadvantageous if deciding to move into a general partnership because partnerships can have unclear authority and instability. Findlaw states, “A partnership is dissolved as soon as one of the members ' dies, retires, resigns, files for bankruptcy, or otherwise quits. This can mean a sudden and unexpected end to a profitable business” (“What Are the Disadvantages of Partnerships?,” n.d.). Cora and Caley can act with third parties on the behalf of the partnership which can hurt or help their business because either can make an unhealthy decision on the behalf of the home decor business. Findlaw states, The third parties, this means that all partners act on behalf of the partnership, can enter into contracts, and by the same token, bind the partnership into unwanted agreements” (“What Are the Disadvantages of Partnerships?,” n.d.).

According to the (UPA (1997) (Amended 2013), when two people agree to share the control of a business and split the profits then a partnership has been formed (p. 11). Advantages are: creation is easy, income is personal income and losses can be deducted from taxes. Disadvantage: Each partner is personally liable for all losses, to include those of your partner (Kubasek et. al, 2016, p. 442). Shania’s lawyer points out here that in order for a standard partnership to work her husband would have to agree to accept personal liability for the debts of the partnership which isn’t in-line with his wishes. However, the lawyer informs Shania of a special type of partnership known as “limited partners. According to (Kubasek et. al), a limited partnership is established when the general and limited partner have an agreement. The limited partner’s role is to be simply a capitol investor and they have no liability for the partnership (2016). Shania’s lawyer tells her in this type of partnership the limited partner pays taxes on their share of the business profit but has no involvement in the management of the business. This option falls in line with Shania’s husbands wishes to only be an investor. However, the lawyer cautions Shania that

Cameco is a major supplier of Uranium processing service, offering fuel refining, coversion, manufacturing and generation of uranium concentrate and sales of conversion.

As a requirement for the completion of this portfolio, you should first decide on a type of business you have or would potentially like to start up in the future (e.g. restaurant, shop, service etc.). Your answers to the tasks below will relate to this business.

He is planning to expand the firm by selling cookies and open a new store in Central London selling tea, coffee, cookies and cakes. Therefore, it is necessary for them to prepare and analysis their financial information before they start their projects. This case study will focus on some of the limitations and benefits of his future business plan and it will guide through explanations and suggestions.