other companies. The corporation has a huge disadvantage is a double taxation. And the rest of disadvantages are same as LLC. 3. What action would you recommend the company undertake? Why? I would recommend Mcgee company use LLC as a form of business organization. The most important reason is there is no double taxation. The company only needs to pay individual taxes. Also, it has all the same advantages as the corporate
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Business Structures Paper Finance/571 August 5, 2013 Business Structures Entrepreneurship is an excellent opportunity for individuals seeking the independence of running their own business. Starting a business can be a quite daunting task for anyone who is looking to do so. Potential business owners must be ready to invest much of their time and energy to the planning and startup phases of their business. Those activities include conducting research, creating a business plan
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1. What are the differences between these three business entities? Sole Proprietorship, Partnership or a Corporation. A sole proprietorship is when one individual owns a business and is the person responsible for it. This person holds all the responsibility in liabilities and liability claims, but will also be the sole person to collect profit, if there is any. Sole proprietorships are subject to few government regulations and are easy to start, however, there is unlimited liability and capital
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must accept the lowest qualified bid - can use privilege clause (the owner has privilege to not accept the lowest bid) Various forms in procurement: (request for expression of interest (RFEOI) Request for proposal - now frequently for construction law (RFP) - owner choose to cancel RFP anytime (e.g. too expensive etc). RFP less risk, but less certainty, b/e it’s not bound by a contract. Tenders/Request for quotation (RFQ) - process set out to be TRANSPARENT - be in trouble if say we wanted to choose
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Describe the characteristics of the four basic forms of business ownership. A sole proprietorship is a business that is owned, and usually managed, by a single person. A partnership is a voluntary arrangement under which two or more people act as co-owners of a business for profit. A corporation is a legal entity created by filing a document with a state agency also known as the articles of incorporation. A corporation is considered to be a separate and distinct from its owners, who have a limited
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invested in the business but also personal assets. * Income Taxes – Due to you being the sole owner there is no separate business income tax filing for a business under Sole Proprietorship. Business income or loss is reported on the sole proprietor’s personal tax return, and any tax is paid at the individual level. * Longevity / Continuity - The Sole Proprietor is the sole owner, with no partners in the business, if the Sole Proprietor becomes disabled, retires or dies the business is dissolved
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The first part of this paper shall discuss the definition of the partnership organization form and the contents of a typical partnership agreement or article of co-partnership, in order to give the reader something of a basic background of a partnership in general. The second part shall talk about the advantages and disadvantages of partnerships, a partnership’s defining characteristics – namely, voluntary agreement, mutual contribution of money/property/industry to a common fund, co-ownership of
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association of two or more persons to carry on, as co-owners, a business for profit (Uniform Partnership Act, section 6). Partnerships resemble sole proprietorships, except that there are two or more owners of the business. Each owner is called a partner. Partnerships are often formed to bring together various talents and knowledge or to bring needed capital into a business. Partnerships are generally associated with the practice of law, public accounting, medicine and other professions. Partnerships
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PART A Business Forms of Organization SOLE PROPRIETORSHIP: A sole proprietorship business is owned by a single individual and is not legally differentiated from the owner. It is the simplest form of business as there is less paperwork and it is subject to fewer regulations and restrictions. It is not usually required to register as a business unless it operates under a fictitious name or provides supplies or services that require licensing. The owner has complete autonomy for all business
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Small Business Idea Tina Sergio ACC/561 Week 1 February 5, 2013 Bobby Bates Small businesses and entrepreneurs form the backbone of the U.S. economy. Since early America, entrepreneurs have generated ideas that create opportunities so other people were able to begin their own company, and, it is likely that new entrepreneurs will continue to
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