PROPRIETORSHIP: This business entity is the most common business used in the United States. This entity is owned and ran by one individual where there is no legal distinction between the owner and the business. This legal name of the business is the owner’s name; however, the business may operate under a fictitious name by filing a DBA. This person is legally accountable for all elements of the business including finances, loans and debts. One of the advantages of doing business as a Sole Proprietorship
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Running Head: LEGAL UNDERPINNINGS OF BUSINESS LAW Legal Underpinnings of Business Law BUS 670: Legal Environment Instructor: January 2, 2014 This assignment will fall on the presumption that I own a business, and it falls into one of the five different categories and company names as follows Tinker’s Home Security Service (sole proprietorship), Tinker & Tailor’s Home Security Service (general partnership), Tinker & Tailor’s Home Security Service (LP), Tinker & Tailor’s
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Case Study A: What concerns would you have about operating this business as a sole proprietorship if you were Stan? What alternative form of business organization would you recommend and why? In this case Stan is thinking about starting a toxic waste disposal business. He is considering operating this business as a sole proprietorship. Although this is a valid business organization it also carries numerous disadvantages, if not all aspects of the company are taken into account. I will explain
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MODULE - 1 Forms of Business Organisation Business Environment 3 Notes FORMS OF BUSINESS ORGANISATION 3.0 INTRODUCTION After identifying the business in any field e.g., Insurance, it is necessary then to have a legal entity to be known in the society. The legal entity can be in any form of a business organization. The various forms of organization are as follows: 1) Sole proprietorship 2) Partnership 3) Co-operative Society 4) Joint stock company (Private
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In this case Jonathan who owns a sole proprietorship has transferred business assets of $1 million to a new corporation. He also transferred $325,000 of debt and adjusted basis of $200,000. Jonathan has no taxable gain or loss; he is justified in the extent that he is under section 351. The rule for section 351 is that no gain or loss should be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange
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orders for fireworks displays do not continue, the company will not have the funds to pay the new employees. The owner is now considering changing the business entity, but he does not know what entity to form or how to form it. The owner has asked you to do the following: Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why. Analyze whether the owner formed a contract with the businesses, and apply the five essential
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Business Structures Jaleesa Thomas University of Phoenix FIN/571 June 30, 2014 Professor Eric Hohl Business Structures When starting a business one of the first steps involves selecting the structure of the company. The three most common structures are sole proprietorship, partnership, and corporation. Successful entrepreneurs sometimes start as sole proprietors and grow their business into a corporation. The key to determining which business structure is most suitable for a company’s
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proprietorship is a type of business where there is no legal distinction between the business and its owner. This is the most common form of doing business in the United States ( Terence Lau and Lisa Johnson, 2015) | Two Advantages | There are many advantages to this type of business. First it is easy to create a sole proprietorship. The entrepreneur in charge simply starts the business. Another advantage is autonomy. The owner is able to decide what they want to do with the business, concerning hours,
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for all debts accrued by the business. This means creditors are entitled to recoup and debts through business and personal assets. • Income taxes: A sole proprietor files their business taxes along with their personal taxes. Typically when filing taxes the form that is files is the 1040. The owner would just need to file a Schedule C form along with their 1040. • Longevity or continuity of the organization: In the event that the owner dies normally the business dies also. Unless the owner
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To: Business Owner From: Jared Williams, Executive Assistant to the President Date: October 31, 2014 Re: Potential Business Model Recommendation I have completed my review the information regarding your company and considered the pros and cons of the available models. It is my recommendation that you convert your Sole Proprietorship into a Limited Liability Company. LLC Details A limited liability company is a relatively new business model that combines the protection of a corporation
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