...The intricacies of doing business in Indonesia will present a mystery to newcomers. Rest assured that there are many “seasoned veterans” that can assist you in your transition to your new job in Indonesia or assist you in making your business venture in Indonesia a success. Expatriate Business Associations Join an expatriate business association and get involved! A sure way to keep in touch with what is going on in the business world around you. Foreign Investment and Company Establishment Are you considering starting a business in Indonesia? Find out a bit about what is involved. Serviced Offices A viable option for new offices - hit the ground running with a fully equipped office from day one. Business Consulting Services Firms providing consulting services to multinationals ... all the help you need to build your business in Indonesia! Legal Matters in Indonesia - "If people do not have access to the law, they cannot know their rights. If people do not know their rights, they cannot demand the enforcement of their rights. If people are not empowered to demand the enforcement of their rights, they will be exploited and abused by those with access to power over the law." Learn more in this article. Cross Cultural Training for Expatriates Learn more about the challenges of working in a cross cultural environment. Practical information and true life solutions from experts in the field! Corporate Taxation An introduction to the broad framework of the Indonesian...
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...Business Structure Advice Michelyn Johnson FIN/571 July 7, 2014 William Mellett Business Structure Advice Many entrepreneurs will make the decision to start their own business and work for themselves. By doing this they must develop a business plan and decide on what business structure to use. Below is an email from an aspiring business owner asking for guidance on which way would be the best to start up and finance his business. Dear Consultant, I am currently starting a business and developing my business plan. I'm in need of some advice on how to start forming my business. I am not sure exactly how it will be financed and whether or not I want to take on partners. I am interested and willing to learn the intricacies of my options to determine how to best proceed with my plan. Please advise on what my options are, the advantages and disadvantages of each, and possible tax consequences for each scenario? Respectfully, John Owner The below response will explain to John Owner the different types of business structures there are, the advantages, disadvantages of each, as well as any tax perks or consequences. Business Structure Sole Proprietorship The simplest common structure of business is a sole proprietorship. This is “an unincorporated business owned and run by one individual with no distinction between the business and you, the owner” (The U.S. Small Business Administration, 2014). As long as you’re the only person that owns the business there is...
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...Business Structure Advice Fin/571 September 21, 2015 William Stokes Business Structure Advice From: Hope Meeks Date: September 21, 2015 Subject: Business Structure Advice Dear John Owner, I am delighted to have the opportunity to provide you with information about the options available to you for starting a new business. I will begin with providing information on each structure along with the advantages and disadvantages of each type of business structure: the corporation, limited liability company (LLC), limited liability partnership (LLP), partnership, and sole proprietorship. The following will also explain the potential tax consequences of each structure. Corporation The third choice is a corporation; the creation of a corporation provides two structures, “C” corporation and an “S” corporation. They are similar structures, but have a few differences. The “S” corporation has restrictions on who the investors are and their number. In addition, they have differences in taxation, and both are the most difficult and expensive structures to form. Corporations have many investors, which take control of the company out of the hands of the owner; this provides extra opportunities for conflicts in decision-making. However, this type of structure has the advantages of limitless funding available from stockholders, and you will only have liability that is limited to your investment. LLC & LLP With a LLC, the number of partners is unlimited and you could...
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...ss » Starting a Business » Thinking About Starting a Business? » 10 Steps to Starting a Business Starting a Business Thinking About Starting a Business? Is Entrepreneurship For You? 20 Questions Before Starting 10 Steps to Starting a Business Understand Your Market Business Data & Statistics Business Types Find a Mentor or Counselor Ask Questions About Starting a Business Create Your Business Plan Choose Your Business Structure Choose & Register Your Business Obtain Business Licenses & Permits Learn About Business Law & Regulations Finance Your Business Explore Loans, Grants & Funding Filing & Paying Taxes Choose Your Location & Equipment Hire & Retain Employees null Thinking About Starting a Business? ARTICLE 10 Steps to Starting a Business Starting a business involves planning, making key financial decisions and completing a series of legal activities. These 10 easy steps can help you plan, prepare and manage your business. Click on the links to learn more. Step 1: Write a Business Plan Use these tools and resources to create a business plan. This written guide will help you map out how you will start and run your business successfully. Step 2: Get Business Assistance and Training Take advantage of free training and counseling services, from preparing a business plan and securing financing, to expanding or relocating a business. Step 3: Choose a Business Location Get advice on how to select a customer-friendly location and comply with...
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...DeWayne Carter, Jr. currently owns a tree cutting business that has roughly twenty employees, two of which work in the office full time. The business owns several trucks that are used in the operations of the business. Mr. Carter makes between $250,000 and $300,000 each year in net income from his tree cutting company. Presently, Mr. Carter’s business is operated as a sole proprietorship and is run on a day-to-day basis. Because the tree cutting business owned by Mr. Carter is a Sole Proprietorship, he has come to our firm seeking advice on ways to limit his liabilities while avoiding large tax increases. There are many ways for Mr. Carter to organize his business in a way that helps him limit his liabilities while avoiding huge tax increases. The first form would be for Mr. Carter to operate his tree cutting business as a limited liability company (LLC). Forming Mr. Carter’s business into an LLC would help lower his risk from liabilities. Members of an LLC are limited to the entity’s liabilities by how much they invest into the entity. The entity itself may be liable for any loss or injury caused by the members but the members themselves are not personally liable. Members who are active participants in the business of an LLC are able to deduct its operating losses against the their own regular income to the extent permitted by law. Another advantage of operating as an LLC is the flexibility of being able to be taxed as a partnership or a corporation. Currently...
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...Small Business Plan September 20, 2011 Accounting 561 Being able to have a small business that is important to the community is the ultimate goal for my company. Providing lost cost party and wedding planning is goal of Sia’s Supreme Planning. Deciding on the best business form out of sole proprietorship, partnership, “C” corporation, and “S” corporation are the first step in building a lucrative company. Once the business organization has been decided, we have to decide on the best financial statement associated with the business. Understanding the business forms such as tax implications, legal implications and accounting implications will provide clarity during the filing for taxes. There are several advantages and disadvantages to sole proprietorship, partnership, “C” corporation and “S” corporation. A sole proprietorship is one person alone. He or she will have unlimited liability for all debts of the business, and the income or loss from the business will be reported on his or her personal income tax return along with all other income and expense he or she normally reports (although it will be on a separate schedule). Although proprietorship avoids the expense of forming a partnership or corporation, many start businesses this way because they are unfamiliar with the other forms of organizations (Business Organization, 2011). All profits and can be re-invested in the business or it can be used by the owner and negative aspect is Owner has full liability for entire...
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...following are some of the forms of business existing in the United States and their characteristics: a. Sole proprietorship b. General partnership c. Limited partnership d. C-corporation e. S-corporation f. Limited Liability Company This report contains an overview of some of the forms of business organizations that exist in the United States. Because of the federal system of the U.S., the many forms of business organizations are subject to the laws and regulations of the state where they operate or are registered. Both federal and state taxes are also taken into account by business owners and financial advisors in the choice of the business form (Perez, 2009). Liability, tax consequences, and legal implications are generally the most important actors business owners consider when choosing a business form. a) Sole Proprietorship The most basic of the forms of business organization is the sole proprietorship where the business is owned by a single person. There are more registered sole proprietorships in the U.S. than the other forms of business. In addition, many big businesses have started out as sole proprietorships (Jordan, 2008). Liability: The owner of a single proprietorship is not protected by limited liability, so he is not insulated from his business debts and obligations. He is personally liable to pay for the debts and obligations the business may incur. The capital of the business entity includes the cash and...
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...Proposal James Collier BUS311: Business Law I Instructor: Daniel Malvin 9-1-2014 A sole proprietorship is a one-person business that is not registered with the state as a corporation or a limited liability company (LLC). The owner of the Acme Firework is a sole proprietor that has never changed his business entity. A sole proprietor can be held personally liable for any business-related obligation. This means that if your business doesn't pay a supplier, defaults on a debt, or loses a lawsuit, the creditor can legally come after your house or other possessions. Product liability laws cover consumer goods and goods used at a workplace. If someone is injured by a defective product or suffers loss or damage to private property, they can sue for damages. Both producers and distributors can also face prosecution if they offer unsafe products for sale. When a defective product causes injury, the manufacturer of the product, the distributor, the wholesaler and the retailer who sold the product may all be liable to the plaintiff. Several large retailers have sent inquires about the company’s ability to fill large orders on a regular basis, but the owner is anticipating he will need new employees and is worried that he will not be able to pay the employees if the large orders do not continue. The owner will have to consider a business entity because the company is going to grow with more employees and workloads. To get the most out of a small business, a company will have to choose...
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...unning head: Business Entity Which Business Entity is Best? BUS670: Legal Environment Leah Westerman January 13, 2015 The first step of many, in the business process is determining the type of entity your business will be. According to Hopson and Hopson (2014) “Usually, concerns over minimizing personal liability, reducing taxes, or becoming more tax efficient drive a business owner’s decision to change the way a company does business.” The options for your type of entity include sole proprietorships, public held corporations, private held corporations, limited liability corporations (LLC), franchises and limited partnerships (LLP). Each type of business runs the risk of being sued for numerous reasons. However, the type of business you own will determine your personal liability exposure as an owner as a result of the lawsuit. A common lawsuit companies are faced with is for a breach of contract. A LLC is one of the smartest choices for a business. According to Hopson and Hopson (2014) “Despite its relative newness, the LLC is now the entity of choice for many because of its flexibility. It allows all members to participate in management, unless the owners elect otherwise in the company’s articles of organization. An LLC takes the advantages of a corporation and combines them with the flexibility and passthrough tax treatment of a partnership...
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...Small Business Idea ACC 561 September 3, 2012 Dr. James Krause Small Business Idea Recently the government has released funds for creating small businesses. These funds would allow any person who wants to start their own business who might have not had all of the funds that they needed. In addition, to the release of funds a company would have to look to see what type of business organization they would like to use for ones unique service or product. Consideration needs to be taken into account for legal, tax, accounting, and other implications when a business owner makes a decision about one of many types of business. Four types of business organizations are sole proprietorship, partnership, corporations, limited liability partnerships. Based on this information it will me decide which form of business would be best suited for my company. Sole Proprietorship According to Cheeseman (2010), sole proprietorship is a form a business in which the owner is actually the business and it is not a separate legal entity. There are some advantages and disadvantages to using this form of business. The advantage to going with the sole proprietorship is that there is no partnership agreement and the disadvantage is that personal assets are open to attack in legal cases (Ohio Government, 2012). Financial statements The main financial statement that would benefit a sole proprietorship is the statement of cash flow. Since, this statement shows where the cash came from and where...
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...somebody etc. Sale of Goods Act - condition and warranties. Consumer protection - Basic Overview of Procurement forms Sarah Mamoser Procurement - when company goes and buys smth; not legal obligation to procur. Tendering cases - construction projects; Contract A procurement stage contract forms when materially compliant bid is submitted there can be multiple Contract A if the owner receives multiple compliant bids -act in good faith (can’t use undisclosed material) -they 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 u, but it was too expensive. How damages determined - Expectation damages - difference between price to do the work, and the price between.... Procurement process - procedures fair and transparent. Things u want to do when working with the lawyer: Consider objectives and expectations, be prepared to talk about what ur concerns, what needs to be done. Giving instructions - agreement, letter. Learn risk factors. Raise concerns. Deadline(timeliness). - budget concerns. Wherever...
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...some and friends, who might be willing to associate with him to provide necessary funds and infrastructure. What sort of business organization should he go and why? ANS. – With the expansion of business, it became necessary for a group of person to join hands together and supply necessary capital and skill. Sanjeev may possess exceptional business ability but doesn’t have much by the way of money and infrastructure; he can have a financing partner. In this case his friend is financing partners who provide necessary funds and infrastructure to him for starting his own bakery and confectionary venture. A financier may need a managerial expert as well as a technical expert and all of them may combine to set up a business with common ownership and management. For starting his own bakery and confectionary venture, he should go for partnership because partnership has many advantages as follows: (i) Easy Formation: Formation of partnership is easier and no legal formalities are to be observed to establish it. At the same time, unlike a company, not much of expenses are incurred for its formation. However, as compared to sole trader’s concern, it may involve certain difficulties, especially in selection and organization of partners etc. (ii) Larger Financial Resources: In a partnership, since several people pool their financial resources into a common business, the amount of capital accumulation becomes much higher than what can be contributed by one person in sole’s trader’s...
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...For a new or proposed business, the selection of a suitable form of ownership business organisation is generally governed by the following factors! The selection of a suitable form of ownership organisation is an important entrepreneurial decision because it influences the success and growth of a business — e.g., it determines the decision of profits, the risk associated with business, and so on. As discussed earlier, the different forms of private ownership organisation differ from each other in respect of division of profit, control, risk, legal formalities, flexibility, etc. Therefore, a thoughtful consideration should be given to this problem and only that form of ownership should be chosen. Since the need for the selection of ownership organisation arises both initially, while starting a business, and at a later stage for meeting the needs of growth and expansion, it is desirable to discuss this question at both these levels. For a new or proposed business, the selection of a suitable form of ownership organisation is generally governed by the following factors: 1. Nature of business activity: This is an important factor having a direct bearing on the choice of a form of ownership. In small trading businesses, professions, and personal service trades, sole-proprietorship is predominant. Examples are Laundromats, beauty parlours, repair shops, consulting agencies, small retail stores, medicine, dentist accounting concerns, boarding-house, restaurants, speciality ships,...
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...LIT1 Task 1 B.S Accounting A. Business forms are categorized into six different organizations. These business forms make up proprietorships, partnerships, corporations, and Limited liability companies. All forms of business have characteristics descriptive of each business form. Identifying the characteristics of each business while accounting for the advantages and disadvantages will help to clarify each form of business. 1. a. Sole proprietorship: A sole proprietorship is a company formed with the ideas and direction of one individual. This type of company is formed on the basis on one individual. A company formed on individual ownership is formed with the understanding of not being incorporated. The success and failure of the company depends on one person. This type of proprietorship has the advantage of just being in one person’s hands. All the decisions are made by one person, all the profits goes to one person. A disadvantage of this type of proprietorship is that the individual has nobody to turn to when he needs help; the responsibility is in his hands. Business entity characteristics fall into seven categories which we will cover below. Liability – There is no real line between business or personal liability and assets, they are the same in sole proprietorship. The outcome of success or failure is determined by the sole proprietor. Government does protect life insurance pay outs in case the business owner dies. Income Taxes – Sole proprietorships have an advantage...
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...Business Structure Advice Rebecca Hardy FIN/571 - Corporate Finance 22 September, 2014 Professor Gurpreet Atwal Dear John Owner, Thank you for allowing my consulting firm to give you the information that you will need to make a sound decision as to the type of business structure that will meet your needs. The three main types of business structure are sole proprietorship, partnership, and corporation. In the next few sections I will explain each type and describe the advantages, disadvantages and tax implications that you would encounter if you selected that type. Let’s begin with the sole proprietorship. Sole Proprietorship The sole proprietorship is the easiest and most cost effective type of business structure to set up, so if funding is a concerned this business structure may be the best route to take. The only cost associated with starting a sole proprietorship the cost of obtaining a business license and the normal startup expenses. With the sole proprietorship the owner is only taxed once on the business’s income. However, one of the major disadvantages of the sole proprietorship is the unlimited personal liability that the sole proprietor faces. In the event that the business cannot generate enough cash flow to pay all of its financial obligations the owner becomes personally liable for all debts. This means that creditors can file lawsuits against the owner’s personal property as well as the business in order to seek repayment for services, loans...
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