...Business Law II Research Paper The advantages, from a liability standpoint, of a business incorporating and that given a business is going to incorporate…the difference in tax treatment between a C-Corp, Subchapter S and an LLC When businesses are started, one consideration that must be made is what type of business it will be. Many decide to incorporate themselves and look to the advantages they may gain from this. Liability may be one of the biggest advantages to incorporating a business. Along with advantages of incorporating, the tax treatment for different types of businesses will differ whether it is a C-Corp, Subchapter S, or an LLC (limited liability corporation). All of these options will give businesses the best solution to take advantage of different types of tax treatment and the advantages of incorporating. From a liability standpoint, incorporating a business is going to protect the owners’ personal assets from business obligations, debts, and any other business activity. With out the liability protection of incorporating, the business owner is responsible for these obligations, debts, and business activity. Once an owner makes the decision to incorporate, they separate personal assets from the business (“Incorporating a business,”). It is important for owners to incorporate to help protect themselves and their families from taking on the burden of a failing business. How does incorporating protect business owners’ personal assets?...
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...Characteristics Proposal One of the most important decisions as a new business owner is deciding what type of structure will be most effective for establishing a business entity. In reviewing different business structures of an organization, Proprietorship, Partnership and Corporation, the Corporation has characteristics an entrepreneur should give valuable consideration to on establishing a new business venture. The different types of stock a corporation can consider issuing and the advantages and disadvantages of forming a corporation is valuable information is considering incorporation. Common Business Structures Proprietorship A business entity owned by one person is called a proprietorship. The company is usually small and can be started with a small amount of capital investment. Sometimes referred to as a Sole Proprietorship, the owner usually has full operational duties of the business and legal responsibilities. The owner can receive all profits of the business but also has legal responsibilities in all the debt of the business even though accounting records are kept separate from the personal records of the owner (Weygandt, Kieso & Kimmel, 2006). Partnership A business entity that is owned by two or more is called a partnership. A partnership is organized much like a proprietorship in that partners share the personal liability of the company’s debts and share the profits of the business. A partnership agreement is usually formed between partners to state...
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...Business Structure Business Structure Being your own boss or in other words owning your own business can have its advantages as well as its disadvantages. As an entrepreneur you are able to take control and direct the culture of your organization and determine what key factors will make your business successful and outdo the competition. The flexibility that you can establish is beneficial to being able to balance your work and personal life with family and friends; all while you are challenging yourself by the new opportunities that will constantly be presented and the creativity that goes along with it. More importantly establishing what type of business is the most important; sole proprietorship, partnership and or a corporation. A sole proprietorship, often being identified as one-person operation, is the most common business structure throughout the world. With a sole proprietorship you have complete control of your organization, making all decisions from your target market, employees, location, and so on. It is simple and easy to establish this type of business structure and the start-up cost are low as well. There are several disadvantage of this type of business structure. Personal liability is a major disadvantage because it is not separate from our business; meaning creditors can sue you directly. Another issue is the ability to raise money to start your business. Most lenders are fearful to financing sole proprietors simple because if the business fails no money...
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...Evans, Director of Communications Subject: Video Conferencing and our Expanding Business Video conferencing is becoming the norm for business communication. Our technology systems are advanced and our need for communication is great. As we expand our business, we become aware of the need to improve our communications systems. We have all used tele-conferencing for communicating when immediate access to a particular person(s) is needed but have you ever wondered what it would be like to be able to see and speak at the same time to that individual? Instead of trying to explain a complicated matter verbally over the phone, what would the reality of showing them be like instead? Incorporating a video conferencing system into our daily business endeavours would bring all our offices throughout Canada as close as humanly possible without ever having to leave the comfort of the office (Tredent, 2011). Here is an overview highlighting the benefits of introducing video conferencing into our corporation. Benefits of video conferencing There are many benefits of video conferencing that affect the business and the employee/employer relationship. The norm for young families now is the increased desire for family time, and as we hire fresh associates we must take into consideration the effect of excessive travel required in our job. Travel is expensive and time consuming; car rentals, business flights and hotels do not come cheap and the amount of time and salary lost by our...
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...Small Business Idea Paula Boyce University of Phoenix Accounting ACC - 561 Professor Trenda Hackett December 07, 2011 Small Business Idea The government has released fund for creating small businesses. One’s interest is to establish a small business and must determine which of the four forms of business organization will best suit the business chosen. Legal, tax, accounting, and other implications when selecting from the four business types are matters of considerations (University, 2008 - 2011). The four forms of business include Sole proprietorship, Partnership, C Corporation, and S Corporation. Discussion will explain advantages and disadvantages of the four forms of business, financial statement associated with each form of business organization, and the consequences of tax implications, legal implications, and accounting implications such as SOX and FASB. An explanation what one’s business provides, the choice of one’s business organization form, and one’s rationale for choosing the form of business organization chosen (University, 2002). Sole proprietorship advantages and disadvantages Sole proprietorship is the most common and simplest form of business. An individual owns and manages the business and is responsible for business transactions and responsible for debts and liabilities incurred (AllBusiness.com, 2007, p. 1). Advantages of sole proprietorship is the proprietor is in full control of the business, no corporate taxes, legal cost is...
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...thinking about renewable alternative energy and places that are successfully incorporating the energy into daily lives, Texas immediately came to mind. Texas is ranked number one in the nation for wind energy capacity (Texas wide open for business, 2014). If one were to look at Texas as a country, it would rank number 6 on a global scale for installed wind energy capacity (Texas wide open for business, 2014). Wind turbines are used to generate electricity from wind. What is interesting about wind energy is that it is a form of solar energy, caused by the uneven heating of the atmosphere by the sun (Wind Energy Development, n.d.). There are advantages and disadvantages to wind energy. First to discuss a few advantages. Wind energy is friendly to the environment and does not use fossil fuels while generating electricity from wind energy (Clean Energy Ideas, 2007-2015). Turbines are a great way to generate energy in remote location and they can be different sizes to support different population sizes (Clean Energy Ideas, 2007-2015). When wind power is combined with solar electricity it is great for developed and developing countries in providing a steady, reliable supply of electricity (Clean Energy Ideas, 2007-2015). Finally, wind is free, and new technologies are making this more efficient to harness wind power (Clean Energy Ideas, 2007-2015). Next, to discuss a few disadvantages. One of the main disadvantages to wind power is that the winds can be unreliable, so sometimes it would...
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...Corporation Incorporating your business does not require that you have an attorney, however it is highly recommended. The structure of a corporation is complex. It is more expensive to organize it than the other two business entities. Corporate control lies with the person who has ownership of the most shares of stock. If a single stockholder or a group of stockholders own at least 51% of the stock they can make decisions of policy. The size of the corporation will affect how formally or informally it can operate. Smaller corporations might operate less formally, but still need to keep proper documentation. Stockholders can hold officers of corporations liable for any actions which might have been improper. Advantages of a Corporation: · Shareholders have limited liability for the corporation's debts or judgments against the corporations. · Generally, shareholders can only be held accountable for their investment in stock of the company. ( Note however, that officers can be held personally liable for actions, such as the failure to withhold and pay employment taxes.) · A corporation may deduct the cost of benefits it provides to officers and employees.: · Can elect S corporation status if certain requirements are met. This election enables company to be taxed similar to ...
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...| | | | Small Business Idea Paper Nakisha Burton ACC/561 Accounting June 9, 2013 | | One of the most important business choices one can make is the decision to become an entrepreneur and invest the necessary time, money, and energy into starting a business. I always dream of owning and running my very own childcare center. The childcare business offers entrepreneurs the opportunity to pursue a passion for child care and child development while enjoying the independence and responsibility of being his or hers own boss. However, starting a childcare business is not as easy as one may think. There is a great deal of information one must be fully aware of. The decision of which type of forms, such as Sole Proprietorship, Partnership, C Corporation, S Corporation, and Limited Liability Company (LLC), can challenging. The legal, tax, accounting implications, the advantages, and disadvantages, the financial statements associated with a childcare center, and plan to present to market, are the reasons to consider for a well designed center that can be develop into a successful plan. Sole proprietorship advantages and disadvantages Unless I choose a specific form of business, my new business will become by default a sole proprietorship or partnership (Daily, 2011). The advantage of a sole proprietorship is ease in establishment and ongoing maintenance as the owner manages operations without the need to consult others. In addition, the solitary owner...
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...ACC 561 Jared Jones Forms of Business Organization Introduction There are four ways that a business can organize itself. The owners and partners in this newly formed business may share in a variety of responsibilities and must decide which form their business should take on. The four basic ways a business can be organized is a sole proprietorship, partnership, C corporation and S corporation. There are a variety of advantages and disadvantages to each. When it comes to Tax implications, Legal implications and Accounting implications this is especially true. Below is an analysis of the various forms of business and the advantages and disadvantages to each, along with various implications associated with taxes, legality, and accounting. Sole Proprietorship Sole Proprietorship is a type of business run by a lone individual. This individual owns the business, and deals solely with all of the losses and all of the profits. The owner also is responsible for all of the liability and has complete control of business operations (Carr, 2011). Typically the business will have an income statement and a balance sheet. The owner through personal income tax return pays all taxes for the business. There are several advantages to this form of business: It is generally not difficult to organize due the requirements of registration not being as harsh to abide to and the financial capital is relatively small. Also, the sole owner has the ability to make all decision for the company...
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...Starting a Business in Canada Starting a new business in Canada can vary in degrees of difficulty depending on the industry you choose to pursue, and the province in which your business will reside. Fields such as telecommunications make it nearly impossible for new entrants to grab market share, as mega-corporations such as Bell, Telus, and Rogers, have essentially monopolized the entire industry. In contrast, industries with little to no barriers to entry, such as the restaurant industry, make it very easy for new businesses to enter. In order to start a business in Canada, you first need to come up with a business idea and then methodically turn it into a structured plan, while ensuring to consider the degree of competition in your respective industry. This is a critical first-step, as the smoothness of your day-to-day operations will rely a great deal on the organizational model you established in your business plan. In Canada, there are four legal forms of business to choose from: sole proprietorship, partnership, corporation, and cooperative. In sole proprietorship, the business owner is directly responsible for all debts and obligations related to their business. In turn, all profits generated by the business are for their keeping. Some of the advantages of choosing a sole proprietorship form of business are: simplicity and inexpensiveness, direct control of decision-making, and a limited regulatory burden. Disadvantages of sole proprietorship include...
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...Starting a Business Online, Part 1 In today’s world of online companies trying to find a unique way to out produce, out resource and outperform competition. It’s going to require the right product and of course the correct approach and research in order to be successful. Identifying the advantages and disadvantages of taking your small business online by performing a SWOT analysis. While conducting a SWOT analysis of my clothing store along the Jersey Shore boardwalk, I determined what my strengths, weaknesses, opportunities and threats could potentially be. My research has indicated that my Strength’s would be my customer service skills, flexibility in my direction and focus, experience in the clothing industry and being able to provide a good value to customers. Weaknesses would be my competition, lack of reputation to gain customer response and potential cash flow. Within the opportunities category, I determined that the weak economy in some regard would be a benefit to apply for government grants and SBA loans to help with my overall business intent. My competition may be slow to adopt new technologies; giving my business the opportunity to excel. The threats that may be a concern are also a weak economy. The developments in technology could change the clothing market beyond our ability to adapt and larger competitors could destroy our chances in the clothing industry. The advantages that I anticipate would be the ability to run my business from virtually anywhere...
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...responsibilities for running the business. Sole proprietors own all the assets of the business and the profits generated by it. They also assume complete responsibility for any of its liabilities or debts. In the eyes of the law and the public, you are one in the same with the business. Advantages of a Sole Proprietorship: * Easiest and least expensive form of ownership to organize. * Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit. * Sole proprietors receive all income generated by the business to keep or reinvest. * Profits from the business flow directly to the owner's personal tax return. * The business is easy to dissolve, if desired. Disadvantages of a Sole Proprietorship: * Sole proprietors have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are at risk. * May be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans. * May have a hard time attracting high-caliber employees or those that are motivated by the opportunity to own a part of the business. * Some employee benefits such as owner's medical insurance premiums are not directly deductible from business income (only partially deductible as an adjustment to income). Partnerships In a Partnership, two or more people share ownership of a single business. Like proprietorships...
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...Business Proposal Sheldon Hensley BIS/220 March 19, 2012 Ross Sines Business Proposal Rock Bottom Records A Business Proposal to Add E-Commerce to the Company Prepared for Rock Bottom Records Prepared by Sheldon Hensley March 19, 2012 Table of Contents Executive Summary 4 Introduction 5 Background 5 Proposed Action 5 Cost Table 8 Executive Summary Doing business in today’s economic structure is not the same as it was 20 years ago. The induction of e-commerce and e-business to economic infrastructure, traditional brick and mortar businesses are finding it difficult to compete with more streamlined businesses that are outsourcing their products and services via the Internet. Streamlining Rock Bottom Records by adding a relational database management system (RDMS) and a website will increase productivity and cost savings by reducing the amount of time it takes for analyzing productivity, ordering and shipping, financial, and payroll. Adding a website with a RDMS and offering digital music downloads the company will be able to compete with other companies worldwide. The most popular affordable RDMS’s that are in use today are Microsoft Access that comes with Microsoft Office (Professional) is popular with most small businesses ("Microsoft Access Database: The Pros With Less Cons When Using Microsoft Access As Your Database", n.d.)., PostgreSQL which runs on multiple operating systems and is an open source database...
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...Religious Diversification Today Religious diversification in the workplace is an issue employers will always face. Management of this diversity is necessary so that employees can reach their full potential, maximize productivity, and create a positive work environment by which everybody is accommodated. By understanding the positives and negatives of having religion and spirituality in the workplace, it is clear that there are advantages and disadvantages. Positive aspects of integrating religion or spirituality into the workplace may include improved worker performance and better relationships between management and employees. There are disadvantages as well, such as discrimination, and resistance to religious culture, which can reduce productivity and may lead to legal issues. Law and Regulation The most common way a company integrates religious views into their work place would depend if the company were public or privately held. For example, if the CEO of a private organization was Christian there might be rules for allowing extra prayer time at the work. Under federal law, regarding religious expression in private work areas, “Employees should be permitted to engage in private religious expression in personal work areas not regularly open to the public”(Earp, 2008). Publicly held organizations must allow for prayer during the day and if the other employees are atheist or another religion they must be respectful. As long as work is being completed during work hours all...
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...Student Answer: One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt. Sole proprietorships are subject to more regulations than corporations. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones. Corporations of all types are subject to the corporate income tax. Instructor Explanation: Chapter 1 Explanation: Ch 1: a is correct, all others are incorrect a: incorporating provides owners limited liability b: sole proprietorship has less regulation than corporation c: In limited partnerships certain partners can be designated general partners and others limited partners with differences in control and liability d. sole proprietorships and partnerships are taxed just once at owner level (pass-through of income to owners) whereas corporation earnings can be double or triple taxed depending on individual or corporate ownership of stock e. S-corps can elect to be taxed as proprietorship or partnership Points Received: 10 of 10 Comments: 2. Question : (TCO G) Aubey Aircraft recently announced that its net income increased sharply from the previous year, yet its net cash flow from operations declined. Which of the following could...
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