This website uses cookies to ensure you have the best experience. Learn more

Legal Form Of Bussiness Essay

1152 words - 5 pages


In this paper we will compare and discuss different forms of business and their advantages and disadvantages. Following are the different type of business formed to conduct work:
1. Sole proprietorship.
2. Partnership.
3. Limited liability partnership.
4. Limited liability company.
5. S corporation.
6. Franchise.
7. Corporate.
1. Sole proprietorship,
The sole proprietorship is a type of business entity that is owned and run by one individual. All the decisions of the business are made by that individual and there is no legal distinction between that individual and the business.
Following are the advantages and disadvantages of Sole proprietorship
...view middle of the document...

In an LLP, some partners have a form of limited liability similar to that of the shareholders of a corporation.
In some countries, an LLP must also have at least one "general partner" with unlimited liability. Unlike corporate shareholders, the partners have the right to manage the business directly. In contrast, corporate shareholders have to elect a board of directors under the laws of various state charters.
Limited liability partnerships are distinct from limited partnerships in some countries, which may allow all LLP partners to have limited liability, while a limited partnership may require at least one unlimited partner and allow others to assume the role of a passive and limited liability investor. As a result, in these countries, the LLP is more suited for businesses where all investors wish to take an active role in management.
3. Limited Liability Company
An LLC provides the choice of tax regime. The organization can elect to be taxed as a sole proprietor, partnership, S corporation or C corporation , providing for a great deal of flexibility.
A limited liability company with multiple members that elects to be taxed as partnership may specially allocate the members' distributive share of income, gain, loss, deduction, or credit via the company operating agreement on a basis other than the ownership percentage of each member.
Limited liability, meaning that the owners of the LLC, called “members”, are protected from some or all liability for acts and debts of the LLC depending on state shield laws. Much less administrative paperwork and record keeping than a corporation.
Pass-through taxation, unless the LLC elects to be taxed as a C corporation.
Using default tax classification, profits are taxed personally at the member level, not at the LLC level.
LLC in most states are treated as entities separate from their members. However, in some jurisdictions such as Connecticut, case law has determined that owners were not required to plead facts sufficient to pierce the corporate veil and LLC members can be personally liable for operation of the LLC.
For real estate companies, each separate property can be owned by its own, individual LLC, thereby shielding not only the owners, but their other properties from cross-liability.
It may be more difficult to raise financial capital for an LLC as investors may be more comfortable investing funds in the better-understood corporate form with a view toward an eventual IPO. One possible solution may be to form a new corporation and merge into it, dissolving the LLC and converting into a corporation.
The management structure of an LLC may be...

Other Essays Like Legal Form of Bussiness

Royce-Chocolate-Marketing-Plan1 Essay

3682 words - 15 pages DIPLOMA IN BUSSINESS MANAGEMENT 16TH INTAKE SEMESTER 1 DB 101 PRINCIPLES OF MARKETING GROUP PROJECT GROUP NAME Members Lecturer Date PRODUCT : : : : : : Marketing Plan Report Juliana Yeo, Anthony Ng, Selva Raj, Johnny Quek Mr Louis Sim June 2009 Royce’ Chocolate Marketing Plan Table of Contents Executive Summary Brief Background of Company Mission Statement Marketing Objectives Situational Analysis Marketing Mix Strategy Implementation

You and the Internet Essay

1620 words - 7 pages latest news on any subject which is of continuing interest to you. Do you have an interest or gripe about anything? Send some e-mail to the people or corporations responsible. It's not difficult to find the addresses. You'll find most companies or organizations quite eager to respond. This is also a great way to do research. You can create a form letter which might ask "What is your company doing to reduce pollution?" and send it to a thousand

Legal Writing

2377 words - 10 pages type requires a balanced analysis of a legal problem or issue. Examples of the first type are inter-office memoranda and letters to clients. To be effective in this form of writing, the lawyer must be sensitive to the needs, level of interest and background of the parties to whom it is addressed. A memorandum to a partner in the same firm that details definitions of basic legal concepts would be inefficient and an annoyance. In contrast, their

The Way of Wii

2502 words - 11 pages , According to an interview with Nintendo's game designer Shigeru Miyamoto, the concept involved focusing on a new form of player interaction. "The consensus was that power isn't everything for a console. Too many powerful consoles can't coexist. It's like having only ferocious dinosaurs. They might fight and hasten their own extinction."[3] It was a designed as "a new to the world product". Otherwise, Nintendo has sufficient resources, no matter human

Marketing Across Cultures - Essay

2563 words - 11 pages products and opening new outlets in different locations of the Country. Presently KFC have its branch in 18 major cities of Pakistan with more than 60 outlets in Pakistan. KFC also plays in the economic development of the Pakistan. Government of Pakistan receives over Rs. 10 million per month from KFC Pakistan in the form of direct taxes. 95% of all food ingredients and packing material used by the KFC is obtained locally, which end up in purchase

Legal Forms of Business

1003 words - 5 pages Law 531/ Business Law Legal Forms of Business As an entrepreneur one of the most important decision to make, when starting a business is the legal form of the business. In making this decision many factors are taken into consideration, such as financial resource for business, government rules and regulation, and personal liability. In this paper a discussion regarding the different forms of business including scenarios of these form and

Small Business Idea

559 words - 3 pages other implications when selecting the four business types will be touched. The advantages and disadvantages of the four different forms of business organization and the different types of financial statements associated with each form of business. The consequences associated with each form of business organizations in the implication of tax, legal, and accounting including SOX and FASB will be discussed. An explanation of the unique product or

English for Workplace Communication

3254 words - 14 pages relevant to the development technology. b) Applying information technology in the management of schools. c) Generate ideas among staff to improve management in school. d) Creating positive interactions among staff in order to form collaborative spirit. e) Developing a value associated with morality, ethics, and attitudes positive and high spirituality by holding their respective religions. f) Improving motivation among staff

Couses of Conflicts in Nigeria

1223 words - 5 pages COUNCIL OF LEGAL EDUCATION FORM B NIGERIAN LAW SCHOOL, HEADQUARTERS, BWARI, P.M.B.170, GARKI ABUJA-NIGERIA. To the Referee, Please return the completed form directly to the Secretary, Council of Legal Education, Nigerian Law School, Headquarters, Bwari, PMB 170, Garki, Abuja, not later than August 13th, 2010. Under no circumstances should the completed form be returned to the applicant. The applicant will give you a stamped addressed

Civiliation And Culture

389 words - 2 pages literatures and mathematics were formed. The sexigecimal counting method was established which along with mathematics our society uses on a daily basis. Using these mathematic and writing concepts helped them keep records and establish a form of government. This form of government had a two-house congress and a board of governors which is very similar to the government used today. In this government the Sumerians used the first legal code, UR

Mercader of Venecia

572 words - 3 pages ) seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict. Noun form of the verb negotiate. Risk Possibility that a mishap or misfortune, someone or something suffers injury or harm. Damage It means "harm" the loss of life, personal injury or other damage to health and property loss or damage caused to property of States or of natural or legal persons, or international intergovernmental

Related Papers

3 Legal Form Of Business Essay

520 words - 3 pages and with hard work and skill it could grow into a Corporation like “Coco Chanel”. Inclusion, “it is important that the business owner seriously considers the different forms of business organization—types such as sole proprietorship, partnership, and corporation. Which organizational form is most appropriate can be influenced by tax issues, legal issues, financial concerns, and personal concerns” (“StudyFinance: Types of Business Organization

An Overview Of The Socialist Party And Bob Dole Abortion

833 words - 4 pages I. Socialist Party...The Socialist Party is based on the idea that the working class are fully capable of running their own bussinesses and magnaging their own lives. The party strives to make a classless system, all people living in the country are equal in status income and future. Everyone works and earns their fare share. The government and big ego driven bussiness CEO's shouldn't be manipulating the lower or less fourtunate class. The

Sexual Harassment Essay

1287 words - 6 pages . (Kubasek, 2009, p. 608) (Swishre, 1994) References: Kubasek, N. B. (2009). The Legal Environment of Bussiness; A Critical Thinking Approach, Fitfth Edition. Upper Saddle River, NJ: Pearson Prentice Hall. Negrón, L. M. (2006, 5 9). Justia > Cases > US Court of Appeals > F.3d > 447 > 85 - Blanca Valentín-almeyda, Plaintiff, Appellee, v. Municipality of Aguadilla; Justo Cruz, Defendants, Appellants. Retrieved 5 2, 2010, from Justia: Cases US Court

Enron Committed Suicide Essay

995 words - 4 pages Enron Committed Suicide Name Leadership/LDR 531 April 11, 2011 Instructor Enron was considered the major player in energy and considered as one of the most successful companies until it collapsed in 2001. Failure of this company did not only affect the employees and stakeholders, but also it had a negative impact on the United States economy. Public scrutiny of Enron’s failure, through legal battles, revealed how the toxic