...Legal Forms of Business Consider each of the following forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. Develop scenarios in which each of these forms of business would be the preferred form. For each scenario, justify why the corresponding business form is preferred. In today business world entrepreneurs are presented with many forms of business organization to choose from to conduct their business. Every form of business brings advantage as well as disadvantage and the selection of the legal form of the business organization available should base on according to Cheeseman (2010), “factors, including the ease and cost of the formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, tax consideration, and the like.” (Cheeseman, 2010). Sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate are the most known entrepreneurial forms of conducting nosiness. Below are you will find scenarios in which each of these forms of business would be the preferred form and justification why the corresponding business form is preferred. Sole Proprietorship Sole proprietorship represents the simplest form of the legal business organization where the owner, called in this form of business organization the sole proprietor, is...
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...The Business Environment Lenina Davis AIU Online Abstract Stocks and bonds are investments that give you choices to invest your money into different businesses with the hopes of profiting. Stocks are shares in a business, if you decide to invest in a business; you’re buying a part of ownership into that business. When investing in bonds, you’re lending out money to the business with the hopes of that business paying back the bonds amount. The Business Environment The different legal forms of business are sole proprietorship, partnership, and corporation in which all forms have to function in the legal, social and economic backgrounds in the form of business. As business entrepreneur, one has to decide which legal form would best fit the company to guarantee success. All Businesses have their advantages and disadvantages, there will be risk and management will have to determine which legal form that they want to take and hope that their decisions will turn out to be the right choice to meet their goals. There are three different legal forms that a business can choose from: corporations; partnerships; and sole proprietorships. Corporations are one legal form of business organizations that a company can choose from. According to (morebusiness.com, 2009) some benefits of choosing a corporation include the following… Corporations have unlimited life extending beyond the illness or death of the owners, owners personal assets are protected from business debt and liability...
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...There are many legal forms of businesses that can be selected when a new business is being established, or a previously established business is considering changing legal form. These legal forms of business each have innate advantages and disadvantages related to legal liability, taxes, continuity, and control. The legal forms of business include: sole proprietorship, general partnership, limited partnership, C-corporation, S-corporation, and Limited Liability Company. Other forms of business include: family limited partnership, professional partnership, professional corporation, and personal services corporation, but for the purposes of this document we will include only the most common and appropriate. We'll discuss the characteristics of each of these legal forms of business below. Sole Proprietorship: Sole Proprietorship is the most common form of business in the United States. This is most likely due to the ease with which this form of business can be established. In the United States more than 17 million companies are operated under the form of sole proprietor, this equates to approximately 73 percent of all businesses in this country. Sole Proprietorship is an unincorporated form of business which can be established simply and with very few legal formalities. Local permits and licensing are all that would be required in order to establish a sole proprietorship, unless the business intended to operate under a name other than that of its owner. A sole proprietorship can...
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...Comprehensive Statement Analysis Business organizations come in different forms, and although they all have financial gains and losses, not all have the same rules and regulations that need to be complied with when preparing financial statements. The Advantages and Disadvantages of the Different Forms of Business Organization Sole proprietorship is a business organization that is owned by one individual. The advantages to a sole proprietorship is that all profits go to the business-owner and that the owner has full control of the business (Kimmel, Weygandt, & Kieso, 2011). There are also some disadvantages in a sole proprietorship-such as the owner is personally liable for all debts and obligations of the business. Another disadvantage is that the business and the owner are not separate beings (Cheeseman, 2013). A business organization that is owned by two or more individuals is a partnership. The advantages to a having a business partnership are that there is more capital put into the business and that the obligations and debts are shared among each partner. Individuals who are part of a partnership can also deduct their losses through their personal income tax. There are a few disadvantages to being part of a partnership are that all profits are shared and that all decisions need to be made by each partner (Cheeseman, 2013). A C Corporation is any corporation that is taxed separately from its owners. Corporations are a “separate legal entity (or legal person) for most purposes"...
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...LEGAL FORMS OF BUSINESS Legal Forms of Business Law/531 April 12, 2012 Robert Payne Legal Forms of Business Choosing the proper business organization structure is one of the most important decisions that a business owner must make. The type of organization will determine how the business handles tax matters and whether there is protection against personal liability. A business owner should consider several factors in choosing a business structure, including the number of individuals in the business, type of business, profitability of the business and insurance. In this paper I will explain the legal forms of business, sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. I will develop a scenario explaining each form of business and why it was chosen. Sole Proprietorship “A sole proprietorship is the simplest form of business organization. The owner of the business, the sole proprietor, is the business” (Cheeseman, 2010, Business Ethics and International Issues, pg. 530). For example, an individual who makes and sells jewelry for a profit would benefit from being a sole proprietorship. It is the easiest business to form, does not cost a lot, and must be registered with the Secretary of State. The sole proprietor would own all the business, have the right to all the profits, and will not pay taxes on the business because sole proprietorships are not separate legal entities...
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...Small Business Idea This particular assignment instructed the student to develop his or her small business idea. The student is to imagine that the government has released funds for creating small businesses. In turn the student desires to start a small business and must decide which of the four forms of business organization would best suit the unique product or service. The information to follow will discuss the advantages and disadvantages of the four different forms of business organization, the different types of financial statements associated with each form of business organization, the following consequences associated with each form of business organization, an explanation of the unique product or service the small business provides, the choice of business organization form for the new business idea, and the rationale for choosing this form of business organization. Different Forms of Business The type of business may not be the first question a new or potential business owner contemplates. It is, however, a question that must be carefully addressed because of the tax, managerial, legal and liability impacts that the business formation has. There are a number of legal forms that a business can take. The most common are sole proprietorship, general partnership, limited liability company or LLC, and C or S corporation. Sole Proprietorship Sole proprietorships are probably the simplest and cheapest forms of...
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...Legal Forms of Business LAW 531 Legal Forms of Business The first step in a new business is to decide how the business will be structured and the first executive decision will be to choose what type of business organization is the best. There are a number of legal forms that a business can take but to make that choice the following should be taken into account. For example: the size and scope of business, the level of structure, the level of control, tax matters, profit or loss of the business, re-investment issues, etc. There are several legal forms of business: sole proprietorship, partnership, limited liability partnership, Limited Liability Company, corporation, S corporation. Sole proprietorship In a first scenario a handyman who wants to get into business which will have little paper work and set up cost. The entrepreneur doesn’t have a partner and will be running the business alone. For this scenario the best business form will be sole partnership. This is a business with one owner which means the owner and business are inseparable. In other words the owner is the business and the business is the owner. The majority of small businesses start out as sole proprietorships because it has some advantages. • sole proprietorship is easy to form and operate • least expensive form of ownership to organize • owners are in complete control, and may make decisions by themselves • the owner receives all income generated by the business • it is easy dissolve the business...
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...Sole proprietorship The sole proprietorship is the simplest form of business entity. Single person carrying on a business for profit. The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietor need only register his or her name and secure local licenses, and the sole proprietor is ready for business beginning and ending the business venture are uncomplicated steps requiring little more than the decision of the sole proprietor This can be an advantage, especially when the proprietor is not certain whether he or she will wish to continue the venture for any significant length of time and thus is unwilling to spend much money on filings, legal drafting, and the like. Disadvantages: The sole proprietorship does not have any legal existence separate from that of its owner. It also removes any shield from liability that might otherwise protect the proprietor. Thus, the proprietor is personally liable for all obligations of the business Partnership In contrast to general partnership law, a limited partnership is not dissolved by the death of a limited partner, and a limited partner may not compel dissolution of the partnership absent contrary provisions in the partnership agreement partners in general partnerships are jointly and severally liable for all obligations...
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...Ithaca Legal Myth on Emergence of Social Enterprises in China By JIN Jinping∗∗ Abstract Is social enterprise a new form of organization, differ from for-profit ones and not-for-profit ones? The article tries to answer this question. The social enterprises seem blur the boundary between for-profit and not-for-profit in the objects, while they don’t break though the distinction between for-profit organization and not-for-profit organization, and the rules applied respectively. However the social enterprises can enjoy some special treatment, not base on the form of organization, but on the social benefit of their mission. We should deal with social enterprises and pure business enterprises differently, and shouldn’t ask the later to offer what they needn’t. Key words: Social Enterprises; Corporate Social Responsibility; Community Interest Company; the Triple Bottom Line PartⅠ. Introduction While “corporate social responsibility” is broadly concerned by the public, a new term “Social Enterprise” has been introduced and is gaining its popularity. There are quite a few incubators for social enterprises in practice, and some foundations have put ∗∗ Jin Jinping, Lecture in Peking University Law School. Email: jinjinping@yahoo.com.cn. 1 social enterprises at their priority list of their grantee.1 The term “Social Enterprise” is first used in a report of Organization for European Economic Co-operation,(OEEC) in 1994, indicating the organization aiming...
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...Assignment Brief | Title of Qualification:Edexcel BTEC Level 4 HNC in Business | Unit title: Unit 1 Business Environment | Unit code(s): Y/601/0546 | Learner:Nuraiym Azygalieva | Assessor:Dinara Bobusheva | Internal Verifier:Talant Asan uulu | Title of Assignment:Organizational purposes of Business and effective strategy in context of Business start-up.Grading criteria: P1.1, P1.2, P1.3; M1; D1.Related learning outcomes:LO1: Understand the organizational purposes of businesses. | Assignment Number:__1__of __3__for this Unit | Date assigned:November 1, 2013 | Date of review:November 8, 2013 | Date for final submission:November 15, 2013 | Learner declaration:I confirm that this assignment is my own work and any assistance received has been acknowledged and all sources have been stated.Signature: Date: November 15, 2013 | Scenario:In order to facilitate the interactive teaching technique due to accepting the basic findings of Interactive Business Situations Analysis conducted during the seminars and independent students’ study, the following two alternative scenario have been proposed for designing the required Assignment # 1 as follows:Scenario # 1:Primary terms of Business start-up to be organized as “Skull-Up” company are determined as Business partnership with full liabilities legal form. Business specialization of considering enterprise is Restaurant service providing...
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...“BUSINESS ORGANIZATIONS” Hundreds of thousands of people decides to start a business every year. There are quite a few different types of business in the United States and abroad. Choosing what form of business organization can be an important decision. Some businesses become successful, while there are some that fail. The three forms of business organizations are, sole proprietorship, partnership, and corporation. In this paper, I will discuss the three forms of business organizations, how much control its owners have, advantages as well as disadvantages and legal liability. The most common type of business operating in the United States today is sole proprietorship. It also is the easiest form. Sole proprietorship has only one owner, and he or she has total control. An example of a sole proprietorship is a beauty salon. The owner may hire other stylist to work for them, but still controls the business. There are some advantages of using this organizational form such as; the sole proprietor has full control, low startup cost, and profits. The one biggest disadvantage for sole proprietorship is the lack of protection from personal liability. Also it could be difficult to raise capital, and no one to continue the business. As sole proprietor, you have unlimited personal responsibility for your business’s liabilities (Brittin, 2001). For instance, if the company has trouble paying for supplies, the suppliers will be able to sue to recover the amount...
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...UOP Professor Richard Rice Traditional and Non-Traditional Litigation Determining the ideal methodology for resolving a business dispute can be a challenge for business. One hires an attorney and files a lawsuit requiring the other to hire an attorney and defend the lawsuit. As the number of court cases filed grows each year and the cost of litigation increases. More organizations are looking for efficient ways to settle business disputes. Many forms of traditional litigation exist in the legal system; the forms exist in the context of suit, answer, discovery, trial or jury. In addition a variety exist in the non-traditional Alternative Dispute Resolution (ADR) aspect of the legal system, the nontraditional or Alternative Dispute Resolution (ADR) aspect of the legal system forms exist in the context of as mediation, arbitration, conciliation, mini-trial, and negotiation. After reading this paper one will find a comparison and a contrast of the traditional litigation system with the non-traditional forms of Alternative Dispute Resolution (ADR). This paper will also examine the risks that businesses and other organizations encounter when dealing with traditional litigation and where might an ADR be a more appropriate measure in order for business managers to reduce those risks. Traditional litigation is the process of bringing, maintaining, and defending a lawsuit in a Court of Law (Cheeseman, 2010). Litigation...
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...the simplest form of business entity. Factually speaking it is not an entity at all in the way that a corporation exists as a legal entity. Rather, a sole proprietorship is the person conducting business. They are conducting business on behalf of themselves, they obligate the business personally, and they are personally responsible for all liabilities. Also, no special legal filings are needed outside of compulsory licenses that might be required by local governments to conduct business in that particular locale. * Liability: With a sole proprietorship there are no limits on liability to the owner. The owner is personally liable in all legal matters and law suits can reach the owners personal assets. * Income Taxes: Profits realized through business conducted as a Sole Proprietor are taxed as personal income. This typically means at the highest marginal rates. However, expenses related to running a business have long been favored in U.S. Tax code even at the Sole Proprietor level and the deductions are taken on the owner’s personal tax return along with the profit or loss from the business activities. Sole Proprietorships are relatively simple to account for at tax time. A single page Schedule C is filled out with income (or loss) and expenses and the bottom line becomes a single entry on the owners’ personal taxes. * Longevity or continuity of the organization: Simply put, the business lasts until the owner ceases to conduct business (either voluntarily...
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...Legal Forms Business Paper Brandi Austin LAW/531 April 16, 2012 Aaron Kemp Legal Forms Business Paper Deciding the form of business organization is one of the most important phases in developing a company. One must understand the pros, cons, requirements and qualifications needed before determining which form is best for the business. The next few paragraphs will discuss various forms of businesses and provide scenarios to clarify the appropriate use of these forms. Sole Proprietorship A sole proprietorship is the simplest form of business organization (Cheesman, 2010). Easiest put, the owner of the business is the business. There are several major advantages to operating a business as a sole proprietorship. On the positive side, forming a sole proprietorship is very affordable and can easily be transferred or sold without the approval of additional partners. On the negative side all liability falls on the sole proprietor. My current company is listed as a sole proprietorship. In 2008, I wanted to secure my company name and be established in some way as a real business entity. My funds were low at the time, so the fastest and most frugal method for me to establish was a sole proprietorship. Because business was still in the infant stages, the threat of personal liability was not a concern. Partnership A general partnership, or partnership, is a voluntary association of two or more persons for carrying on a business as co-owners for profit. General partners...
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...You are interested in establishing a small business, and you must decide which form of business organization would best suit your unique product or service. Consider legal, tax, accounting, and other implications when selecting from the four business types. Write a paper of no more than 1,250 words discussing your small-business idea. Include the following: The advantages and disadvantages of the different forms of business organization, which include the following: Sole proprietorship Partnership C corporation S corporation The different types of financial statements required by law with each form of business organization, including different names for the equity sections. This does not mean an overview of what is on each statement. What entities are required by law to have statements and what is the difference in the equity? The following consequences associated with each form of business organization: Tax implications Legal implications Accounting implications, such as SOX, GAAP and FASB An explanation of the unique product or service your small business provides Your choice of business organization form for your new business Your rationale for choosing this form of business organization For tax implications for each entity, your book only says that some entities have advantages. Do some research to determine what the tax advantages and disadvantages are for each. Legal implications refers to liability and continuity...
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