Business Structure Advice Essay

712 words - 3 pages

Business Structure Advice
Business Structure Advice
Mr. John Owner,
In response to your email regarding starting your business there are three main forms of business structures, which are Sole Proprietorships, Corporations (S Corp, LLC) and Partnerships. The structure of these businesses differentiate based on liability, tax implications, and the type of business being evaluated when determining what structure to use. This response will also cover the disadvantages and advantages of these types of business structures to help in your decision process.
A sole proprietorship is the simplest and most common structure chosen in starting a business. It is an ...view middle of the document...

Double taxation is taxation on the corporate level and on a member’s personal level (U.S. Small Business Administration, 2014).
There are two types of corporations, S Corporation and Limited Liability Corporation. S Corporation is a Subchapter S designation from the IRS, and chartered as a corporation in the state where it is headquartered. The advantage of an S Corporation are tax savings for you and your business; business expense tax credits where some expenses that are incurred can be written off as business expenses; and independent life which allows a business to have an independent life, separate from its shareholders. A disadvantage is the requirement of scheduled director and shareholder meetings and minutes; by-laws; stock transfers; and records maintenance.
A Limited Liability Corporation (LLC) structure has the benefits of a partnership and a corporation. Advantages of an LLC are limited liability; tax, savings; and the ability to profit share. Disadvantages of an LLC are limited life that when a member leaves the business is dissolved and the members must fulfill all remaining legal and business obligations to close the business; members are self-employed; and pay self-employment tax contributions towards Medicare and...

Other Essays Like Business Structure Advice

Mcbride Financial Service Governance Evaluation Essay

1701 words - 7 pages these were blocked by the 20th century management. The main cause of the problems here were the theories that were developed to organize the enterprise and not the business making the enterprise doom into problems. Business was not so much of concern but how the structure of the enterprise was organized, mattered so that it was organized and reorganized according to what theories people developed (Menard & Shirley, 2008). There was also the

Sole Partnership Essay

801 words - 4 pages partnership is unlimited liability.” That means that the partner is liable for any for the debts contracted and errors made by the partners. It would be a risky partner ship in most situations. Some business decides to incorporate without an attorney’s, which is not advice, it better to have legal advice. A corporate structure is the most complex way and more costly to organize than two other business formations. “The control is exercised

Business Failures

1022 words - 5 pages differentiators are. How will you market? Do you require any training? What are your financing options? Where will the business be located? What business structure are you going to adopt? How to obtain a tax ID, registering with tax authorities, applying for permits and licenses, and hiring of employees/training. This is not meant to be an inclusive list but as a guide. It is equally important to ensure that you do not fall into a “motivational

Lego Case Write-Up

652 words - 3 pages implemented by Knudstorp align with the changes in business strategy? After Knudstorp changed Lego’s business strategy changed, Lego changes its organization structure. They encourage product innovation and sales by offering incentives. They decrease coast by move manufacturing factories to cheaper places. In order to attract more consumers, they develop new series for new segments and extend virtual world and movie business. They also engaged the

Assignment 2 - Business Environment

2261 words - 10 pages )  It is also important because it helps an organisation make decisions. Most businesses have either a tall or flat organisational structure that influences decisions being made. Larger businesses such as Sainsbury’s have a tall organisation structure because they are lots of different layers of management and many people who need to be organised. However, smaller business such as Huddersfield New College and a pub have a flat organisational

Legal Forms of Business

949 words - 4 pages Legal Forms of Business LAW/531 BUSINESS LAW When starting a business, the legal structure for the business must be chosen. It is necessary to understand how each legal structure works in order to make an informed decision. Many types of business structures are available, such as Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Company (LLC), to name a few. Although this may not be the first thing on the

In Other Countries, What Business Strategies and Methods Allow Small Business Owner to Succeed?

2360 words - 10 pages complete failure all together. Governmental influences, political instability, location, and weak internal structure can cause a business to spiral downward. Studying these components will help provide sound-full advice to new entrepreneurs entering the market. This research has provides us with much information on what factors contribute to the success of a company. Taking and understanding these components and using for future endeavors may end

Econ Paper Requirement

638 words - 3 pages recommendations explained by your analysis? 4. Paper presentation—(10 points) good format, citations, lack of spelling errors, etc. Situation A Jenny, your niece, is a smart high-school student who wants to make intelligent choices for her future. Hearing of your course in business economics, she has e-mailed you asking for advice on whether to become a doctor and on the best location to practice it. She recognizes the high costs of tuition and the years of study involved in becoming a doctor. She wants to evaluate if that career choice is an optimal decision for her, so she has asked you for advice.

Conducting Business In China: Negotiating And Building Effective Relationships

996 words - 4 pages interpreters", that's what Chinese tipsters say. However, such advice wont sustain the kind of prolonged year in, year out associations that Chinese and western business people achieve. In fact, breakdowns between foreigners and Chinese business people happen time after time. The main cause of failure is that of the westerners, to understand the much broader context of Chinese culture and values, a problem that too often leaves western negotiators

How To Win Friends And Influence People

1179 words - 5 pages probably isn't true half of the time. I am a manger for a local business and I have tried to use some of the advice from the book for problems which occur frequently. I have had some success using his advice. I have found no real support for his assumption that most people behave rationally or use logic as a tool for decision making. For example, absenteeism is a major problem. I have an employee that worked part-time. She supports herself and one

Human Resources Department Roles And Responsibilities

997 words - 4 pages biases that would interfere with the operation of this impartial business unit.In conclusion the human resource department at Verizon Wireless is crucial to an effective and efficient company. This beleaguered department often performs a thankless job dealing with ethics, diversity, technology, and globalization issues. Verizon has placed this business unit as a neutral reporting structure, allowing representatives to perform without fear of

Related Papers

Business Structure Essay

635 words - 3 pages Business Structure Advice Sandra Martinez FIN/571 October 8, 2015 Mike Flores Business Structure Advice Business Structure Advice FIN/571 October 8, 2015 From: Sandra Martinez To: John, Owner Subject: Advice in starting your business John, in response to your request, for business structure advice, I believe the following business advice will be extremely helpful to lead you to the best decision. I would advice to develop

Business Structures Advice Essay

1096 words - 5 pages Business Structure Advice Leroy Washington FIN 571 February 22, 2016 University of Phoenix Instructor – Hillman Lo The purpose of this paper is to provide prospective business owner, John Owner, with as much information as possible in his quest to start a new business. This paper is being written in response to Mr. John Owner’s email as shown below: Dear Consultant, I am currently starting a business and developing my business plan. I

Scenario: A Social Alliance Team Essay

702 words - 3 pages business, meetings, conversations, writing and/or e-mail conventions, gift-giving, taboos, and entertaining/entertainment. We’ll select countries in class on Monday, April 14th. Isolated advice won’t be enough. You’ll need to put that advice into a context that relates to the culture. For example, you might include one or more of the following approaches: • explain the history of the country and its overarching social and/or political

Business Structure Essay

796 words - 4 pages Business Structure Advice Dear John Owner Starting a new business is not an easy decision to take. At first I would like to coagulate you for taking this decision and it will be my pleasure to explain to you the different business forms that exist, along with each business form advantageous and disadvantageous so you can choose the business form that is best suits your new business. There is more than one form of business structure such as