...assess the various legal structures available to Northern Ireland business enterprises in the 21st Century. There are various options to anyone wishing to establish a business in the Northern Ireland economy in the 21st century. This paper will discuss and assess the three legal structures; sole traders, partnerships and incorporated bodies. Thus, establishing the features, operations, advantages and disadvantages of each. A sole trader is the simplest type of business structure. Tracey defines a sole trader as “a term used to describe an individual who carries on a business or profession without partners”. An alternative term is ‘sole practitioner’. The individual is free to engage in any kind of lawful business activity. Although small, a sole trader is not necessarily any less successful than a larger business. According to the Office of National Statistics, as of 2013, sole proprietors represented 62.6%, of all UK private businesses. Martin McNaughton, from Newry, founded Glen Dimplex in 1973, manufacturing heating pumps. He now ranks at number 736 on the Forbes Rich List, employing 10,000 staff, making a billion sales each year.The main advantage of being a sole trader is having total control over the business. There are no shareholders nor business partners one can be held accountable to. The business person can therefore make any decisions they see fit. In addition to this a sole trader receives, and keeps, 100% of the profits earned by the business and can cease trading...
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...Dear John Owner, Congratulations on your new business venture, this is both an exciting and thrilling time for you and I will be more than happy to assist with your questions regarding preparing your business plan. There are several business structures that may be beneficial for your business depending upon what would be your comfort level with risk. In your letter you describe that you are uncertain about financing and the possibility of partnering with someone. Below I will describe the different business legal structures and how each one would affect you and your business in addition to the tax repercussions of each. Firstly, there are a number of legal bodies that can be used to operate a business. The most basic form is called Sole Proprietorship. As its name describes it, the business is solely owned by one owner which in this case would be you. This is a simple legal designation which allows you to have total control over the responsibilities and gains from the business; it gives you the power to make any changes or business decisions without relying on others. In addition, all business responsibilities are also tied to the same individual including all the risk that comes from being the responsible party for the business. The means that at any point if someone decided to sue your company for whatever reason you will be personally liable, including all personal assets and potential damages to personal credit as well. For tax purposed these can be managed in congruence...
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... | |Qualification |Unit number and title | |BTEC SUBSIDIARY DIPLOMA IN BUSINESS STUDIES |UNIT 1: BUSINESS ENVIRONMENT | |Learner name | Assessor name | | | | |Date issued | Hand in deadline |Submitted on | | | | | | | | |Assignment title(s) |Legal and organisational structures | | |Stakeholders and their influence...
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...Introduction The following paper will identify the different types of business structures. The paper will demonstrate of how each type of business structure would benefit the business owner and some possible disadvantages to certain business structures. Each type of business structure can help the business partners by protecting them both legally and financially. Business founders want to get their business, up and running as soon as possible by starting a business without exploring the different types of business structures, a business owner loses the opportunity to protect themselves from certain tax issues and legal concerns, which can be avoided by structuring their business in certain ways. Starting your business The beginning of starting businesses is financial. You have to know what the steps are in order to develop your own business. The official business link to the US government, https://www.sba.gov/starting-business, provides free training and counseling services such as preparing a business plan and getting financing. By researching some and skill building, using the resources available on the government business link, the new proprietor will be prepared to meet the challenges associated starting a new business venture. Financial skills and management skills must be determined in a very realistic manner. A financial management section of the business plan should explain plans for funding the company and the initial amount of equity capital. Potential investors...
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...EXTERNAL BUSINESS ENVIRONMENT Get assignment help for this unit at assignmenthelpuk@yahoo.com LO1 Understand the impact of socio-economic change on the development of commercial organisations in a business and services industry context Structure and operation of UK economy: market structure; perfect/imperfect competition; oligopoly; duopoly and monopoly; national/local factors; determinants of free-market economy Government economic policy: aims and influence; effects on employment policy; inflation; balance of payments; economic growth in industry sector; current issues Income, wealth, employment and occupational distribution: structure and composition of business and services industry; patterns of demand for business and services; the socioeconomic framework of demand; labour demand in industry sector Demographic trends: geographical pattern of labour demand; nature of employment in business and services industries; employment profiles eg age, sex Social structures: types of people employed; geographical variations; self-employed; unemployed; labour turnover; levels of pay Industry context: contexts eg hospitality and catering, hairdressing and beauty therapy, sports and leisure, travel and tourism LO2 Understand the effect of legal and political environments on business and service industries Structure, operation and influence of local government: structure; areas of control; limits of authority; interface with national government; powers affecting business and services...
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...Types of Legal Ownership Amanada Moore June 8, 2016 Introduction to Business in a Technology World Heather Montgomery Argosy University Types of Legal Ownership Ownership Structures | Sole Proprietor | General Partnership | Limited Liability Company (LLC) | Corporation | Number of Owners | One | Two or more | One or more | Multiple | Formation Difficulty | Low | Low | Medium | Medium/High | Liability | Sole proprietor has unlimited liability. | Partners have unlimited liability. | Members aren’t typically liable for the debts of the LLC. | Officers/shareholders are not typically responsible for the debts of the corporation. | Operational Requirements | Relatively few legal requirements. | There are relatively few legal requirements. | Some formal requirements, but less formal than corporations. | Formal board of directors, annual meetings, and annual reporting required. | Management | Sole proprietor has full control of management and operations. | Typically each partner has an equal voice unless otherwise arranged. | Members have an operating agreement that outlines management. | Managed by the directors, who are elected by the shareholders. | Federal Taxation | Not a taxable entity. The sole proprietor pays all taxes. | It is not a taxable entity. Each partner pays tax on his/her share of income and can deduct losses against other sources of income. | Depending on structure, there is no tax at the entity level. Income/loss is passed through to members...
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...Business Structures Encarni Gallardo FIN/571 11/09/2015 Arnold Harvey Introduction How a company organizes itself in order to conduct business is called business structure (Parrino, Kidwell & Bates, 2012). The size of the company, the type of business, the financial risks, the type of liability, the amount of man power needed among other factors play an important part in the choosing of a business structure that can be more efficient and more beneficial for the company and sometimes the consumer. Sole Proprietorship A one owner company, sole proprietorship might be the easiest business structure to set up but the one that is riskier since the owner is responsible for all the debt and any other financial risks the business might acquired. This is ideal for a low risk business, with little need for control and that is not affected easily by the trends in the economy. Partnerships Also low risk and appealing to small business, individuals enter in partnerships when there is more than one owner. The owners enter into a legal contract that explains the roles, rights and obligations of each individual. In a general partnership, all partners are equally responsible for the debt and obligations of the company regardless of their initial investment. In order to address this issue if this is a concern to the partners, the individuals can enter into a limited liability partnership. This type of partnership holds the partners liable to the total amount of their initial...
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...The Business Structures First, the best way to comprehend business risks is by analyzing its different structures such as sole proprietorship, partnership, and corporation. Each business structure is progressively turning around in ideas to make a profit. Entrepreneurs skim through the diverse models searching for successful companies with a unique system. The success of a business relies in identifying an appropriate business structure. Therefore, understanding how a business structure may or may not be advantageous is very important. Corporate business structures consist of general, subchapter, and limited corporations. General corporations are a separate legal entity owned by unlimited number of stakeholders protected from business creditors. A subchapter S corporation has the characteristics of general corporations with special internal revenue service; a tax status used mostly by small businesses that provides tax advantages. Limited Liability Company is not a corporation but similar to an S corporation with added flexibility and fewer restrictions. A disadvantage of a LLC structure is the hierarchy type of organization where only few personnel establish rules and policies. Moguls comprehend the necessity of a strong business structure and thrive in their industries. On the other hand, small businesses consist of location and need rather than knowledge or expertise. Furthermore, the most difficult business structure is a corporation because it consists of many individuals...
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...LEGAL FORMS OF BUSINESS Legal Forms of Business Law/531 April 12, 2012 Robert Payne Legal Forms of Business Choosing the proper business organization structure is one of the most important decisions that a business owner must make. The type of organization will determine how the business handles tax matters and whether there is protection against personal liability. A business owner should consider several factors in choosing a business structure, including the number of individuals in the business, type of business, profitability of the business and insurance. In this paper I will explain the legal forms of business, sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and corporate form. I will develop a scenario explaining each form of business and why it was chosen. Sole Proprietorship “A sole proprietorship is the simplest form of business organization. The owner of the business, the sole proprietor, is the business” (Cheeseman, 2010, Business Ethics and International Issues, pg. 530). For example, an individual who makes and sells jewelry for a profit would benefit from being a sole proprietorship. It is the easiest business to form, does not cost a lot, and must be registered with the Secretary of State. The sole proprietor would own all the business, have the right to all the profits, and will not pay taxes on the business because sole proprietorships are not separate legal entities...
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...Preliminary Business Studies Assessment Task 3 Notification SCEGGS Darlinghurst Preliminary Business Studies Assessment Task 3 Notification BUSINESS STUDIES PRELIMINARY ASSESSMENT TASK Assessment Task 3 Notification Assessment Task 3: A BUSINESS REPORT Date Issued: Wednesday 6th May, 2013. Subject: Preliminary Business Studies, Topics: 1-3 Title of Task: Business Report on an SME Weighting: 30% Due Date: Part 1 - This should be presented to your teacher by Friday 17th May (Wk 3). It may be presented as either one page of notes or a one page mind map. Part 2 - Tuesday 11 June 2013 (in your lesson), 2013 Term 2, Week 7 (PF- P4, MW-P3) Component: Inquiry & research, Communication of business information, ideas & issues in appropriate forms, Knowledge and understanding of course content Outcomes: P1 discusses the nature of the business, its role in society and its legal structure P2 explains internal and external influences on business P3 describes factors contributing to the success or failure of small to medium business enterprises P4 assesses the processes and interdependence of key business functions P6 analyses the responsibilities of business to internal and external stakeholders P7 plans and conducts investigations into contemporary business issues P8 evaluates information for actual business situations ...
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...The most basic of all business legal structures is the sole proprietorship. For new start-ups the choice of becoming a sole proprietorship is the simplest of all business forms but is it the best? I would talk about the pros and cons of a doing business as sole proprietorship. A sole proprietorship is a business of one without corporation or limited liability status. The individual represents the company legally and fully. Common proprietorship structures include part-time businesses, direct sellers, new start-ups, contractors, and consultants. All debts of the business are debts of the owner. The person who sets up the company has sole responsibility for the company's debts. There are more than 25 million business firms in the U.S. today. Of these, more than 19 million are small businesses owned by one person. This form of business has several advantages. Advantages of Sole Proprietorship are a Quicker Tax Preparation, as a sole proprietor, filing your taxes is generally easier than a corporation. Simply file an individual income tax return including your business losses and profits. Your individual and business incomes are considered the same and self-employed tax implications will apply. Lower Start-up Costs, Limited capital is a reality for many startups and small businesses. The costs of setting up and operating a corporation involve higher set-up fees and special forms. It's also not uncommon for a lawyer to be involved in forming a corporation...
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...Legal Issues for Business Organizations – LIT1 Task 1 Legal Issues for Business Organizations – LIT1 Task 1 – Part A The way a business is organized is an important part of the business’s structure. “Different organizations provide different advantages and disadvantages in creation cost and simplicity, ongoing maintenance requirements, dissolution and continuity, fundraising, managerial control, public ownership, tax planning, and limited liability.” The nature of the business being conducted has little to do with the way the business is organized. (Johnson, 2013) Sole Proprietorship: The basic concept of sole proprietorship is that there is no distinction between the individual business owner and the business. To start this type of business, in most cases, one only needs to begin charging money for goods or services. Because of its simplicity, sole proprietorship is the most common business structure in the United States. According to the U.S. Small Business Administration, “over 70 percent of businesses are owned and operated by sole proprietors.” (Beesley, 2013) Following are some of the characteristics that lend both advantages and disadvantages to this type of business organization. * Liability. As sole owner of a business, there is no severability of liability between the business and the individual. Therefore, all gains and losses of the business are also the gains and losses of the individual. The aspect of unlimited liability is one of the biggest...
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...Wk1 – DQ1 What is one way the U.S. legal system impacts U.S. businesses? Only one, as a business owner I have experienced a multitude of ways the legal system has an impact on U.S. businesses. The first one that comes to mind is setting up the ownership and organizational structure of a business. When an individual or a group of individuals is considering going into business they need to understand all the different ownership structures that can be established. There is a sole proprietorship (SP), general partnerships (GP), limited partnerships (LP), limited liability partnerships (LLP), limited liability company (LLC), s-corporations (S-Corp), and corporations (Corp). I'm sure there is a few more that I forget to mention. But, each one of these structures offers different advantages and disadvantages when considering setting up there structure. I have personally been involved with operating a SP, LLC, and an S-Corp. I'm a fairly simple person, so I describe setting up a company this way. If you’re looking for an easy low cost option and you’re not concerned with limiting your personal liability, then a SP is the way to go. If you are operating with a group of individuals, it can be as few a two, then I would suggest setting up an LLC. There are many choices of course, but this form of ownership has many advantages. They offer the best of a GP, LP, and Corp. LLC's can elect to be taxed as a partnership, which basically means the taxes flow to the owner’s personal tax returns...
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...Business Structures March 1, 2014 Law 531 Charles Houle Business Structures There are several different types of business structures available to a person who is interested in starting a business. The following scenarios will illustrate a preferred form of structure as well as what documents are required for the formation. The business structures to be examined are sole proprietorship, partnership, limited liability, S Corporation, franchise and the corporate form. Sole Proprietorship A person wants to start their own business where they do not answer to anybody but themselves regarding the company. The sole proprietorship maintains a business structure where that one person retains complete control and decision making ability over the business. There are very few formal business requirements imposed on this structure, corporate tax payments do not exist, there are minimal legal costs to form the structure and the sale or transfer can take place at the discretion of the owner. This structure is preferred for those who are likely not investing heavily in capital infrastructure requiring external investors. In order to create a sole proprietorship a business name, location and business checking account must be established. A business license must be obtained from the locality. No legal documents, meetings, minutes, or complications surrounding shares of the business. Partnership (General & Limited) Two types of partnerships, general and limited, provide advantages...
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...Corporation, Limited Liability Partnership, Corporation Paper The purpose of this paper is to discuss three legal forms of business organization; a limited liability corporation or company, a limited liability partnership, and a class C corporation. The paper begins with a brief description of each structure, followed by a comparison and contrast of each form’s advantages and disadvantages. The author finishes by citing examples in which she would use each type of business structure if establishing a new business. It is important to choose the appropriate legal form of organization because the decision affects owner’s risks, raising money, and how profits are taxed (Gitman & Zutter, 2014). Readers can expect to have a better idea of the various options available to entrepreneurs after reading this essay. Legal Forms of Business Organization The three most popular structures of company organization are the sole proprietorship, the partnership, and the corporation. A sole proprietorship has one owner while a partnership has two or more owners, and a corporation is an entity created by law (Gitman & Zutter, 2014). The forms offer limited liability or unlimited liability to its owners. Various structures that provide limited liability include a limited liability corporation, limited liability partnership, and a class C corporation. A limited liability company “is a hybrid legal entity that has both the characteristics of a corporation and of a partnership” (“Limited Liability...
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