...Business Organization George Amaro BUS 311: Business Law I David MacKusick July 11, 2016 Business Organization When the decision is made to start a business the next step is to decide on the type of business entity is to become. This decision is an extremely important one and can have lasting repercussions if all of the details of each business type are not known. Deciding on what type of business entity to have one will have to look at the different types of business structures and then decide accordingly. There are vast differences between the sole proprietorship, partnership, limited liability company (LLC), and corporation and understanding each is vital. A sole proprietorship is a business entity that is solely dependent upon only one owner. Once a business plan is made and the proper licenses have been obtained from the state that the business will be in the business entity has been formed. There are no other formalities or no other expense attached to the formation of this business entity (Rogers, 2012). Although this seems straight forward there are major downsides to a sole proprietorship. Two such downsides are those of taxation and liability. As a sole proprietor, you the owner and the business are considered one and will not be taxed separately; the sole proprietor would be responsible for the payment of all taxes, to include self-employment (U.S. Small Business Administration, 2015). Due to this small fact the sole proprietor would be encouraged...
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...Business Organization In a joint-stock company, an entrepreneur raises capital by issuing stock certificates of its ownership. This normally involves selling shares of the stock to investors that guarantee them the right to a certain percentage of the company’s profits. Such companies include those that allow workers to invest in a 401k, which is beneficial to them. A limited liability company is a legal system that prevents creditors from seizing the personal wealth of a company’s stockholders to pay a company’s debts. If a company goes bankrupt, its creditors cannot seek the person’s wealth of its stockholders for reimbursement. This means that only the money the stockholders have initially invested in the business is at risk. An example of this is if a photographer at a photo shoot leaves a cord in the way and a customer trips over it, only the company would be sued and the photographer’s home, car, and assets are protected (Johnston, 2012). A partnership company is two or more skilled professionals who agree to pool their talents and capital to establish a company in which they are the stockholders and owners. An example of this would be an individual opening a clothing store and have partners who invest and have different skill areas such someone who does designs, someone to promote etc. A sole proprietorship is a non-incorporated business entirely owned by one person. A sole proprietorship is the simplest form of business organization to start and maintain. Such individuals...
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...Business Organization Megan Jutras Bus 210 January 26, 2012 Karla Rogers Business Organization There are various forms of business organizations, such as joint-stock companies, limited liability companies, partnerships, and sole proprietorships. The following are examples of business scenarios for these four organizations. First, a business scenario of a joint-stock company would be a banker, who along with other bankers, which invest some money into an entrepreneur’s up-and-coming company. The banker would then receive stock in that venture (such as a shipping company). All the bankers, along with the entrepreneur, would share the company’s stock, thereby making it a “joint-stock” company. Secondly, a well-known limited-liability company would be Microsoft. Microsoft began as this type of company, which prevents creditors from seizing the personal wealth of Microsoft’s stockholders to pay the company’s debt. If Microsoft goes bankrupt, its creditors cannot seek personal wealth of its stockholders for reimbursement. Only the money stockholders have initially invested in Microsoft is at risk. Thirdly is partnership, which would be a dental office with two licensed dentists who partner together. They agree to pool their talent and resources by establishing the company in which they are the only stockholders and owners. The last business scenario is sole proprietorship, which would be my grandfather’s electricity company. This is a non-incorporated business entirely owned...
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...Business Organization Melanie Smith BUS/210 June 01, 2014 Shane Wenttz Business Organization Mamma Mel’s company structure will be that of a sole proprietorship. A sole proprietorship is one of the most common and simplest company structures to form as it is a one man, or in this case, one woman operation where in the owner (me) takes on all aspects of operating the business including all associated risks and liabilities. Some of the advantages to operating as a sole proprietor include inexpensive to form with legal costs being limited to obtaining necessary licenses and/or permits, Simple tax filing, tax rates are low and the business is not taxed as a separate entity and the owner of the business retains complete control of every aspect of the business. As with all business structures along with the advantages there are disadvantages as well for the sole proprietor these include difficulty raising funds due to the liability to sell stock, unlimited personal liability and the Heavy burden of maintaining profitability. A Business Model refers to the means and the methods used for the successful operation of a business indicating how the business will convert inputs such as labor and capital into outputs that will yield a profit for the business. Mamma Mel’s business model for the food truck will be a straightforward approach of providing fresh, handmade food items as quickly as possible. Once business increases and I am able to locate retail space I will continue...
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...Business Organization A joint-stock company is a partnership or corporation between two parties. An electronic company has stocks that are issued to each party in the company in return for each contribution. The shareholders are allowed to transfer or sell their investment at any point in time by selling their stock to another party. A limited liability Company is when the investors are only limited liable in case the business or the investors that were invested in go bankrupt. Creditors can only take what each investor has initially invested. If Joe invested into a company and the company went bankrupt after five years, because the company was an LLC, the creditors can only take what Joe has initially invested into the company. A partnership is when a group of professionals come together with their ideas to create one company. The people who own this type of company are the ones who are both the owners and the stockholders for the company. Each member owns a percentage of the company. If Jon, Jane and Mike open up an antique store, each party would own an equal percentage such as 33.3% of the company. Jon would be in charge of accounting, Jane would be in charge of supplies, and Mike would be in charge of marketing. A sole proprietorship is when it is a business owned by only one person. The person would be in charge of everything and is the only one reliable for the businesses ups and downs. If Matt was a dentist and wanted to open his own local dental business, he would...
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...Business Organization BUS 210 Bill Wigton Joint-Stock Company A Joint- Stock company is owned by shareholders, each one shares a portion of the company. For example; Mr. Equis designed a glass company that would specialize on building custom shower doors. He sets up a meeting with a group of possible investors, presents his business plans and offer to sale up to 40% of the shares in order to start the business he will keep control of the company by owning 70% of the shares. Limited Liability Company A Limited Liability Company is a form of company that provides limited liability to its on owners. For example; I worked for a company that managed the buildings was called “A&V, LLC”. This was a family owned business and this type of organization help to protect their own assets in case of any law-suits filed by the tenants. Partnership Partnership is a group of skilled professionals that agree to pool their talent and resources by establishing a company in which they are the only stockholders and owners. For example; my dentist Dr. Sardinas is part of a partnership with another dentist. Their Family & Cosmetic Dentistry group is a partnership in which they are both stockholders and owners. Sole Proprietorship A Sole Proprietorship is a non-incorporated business organization owned by one person. For example; “Jose’s landscaping”, this company is run and owned by Jose Martinez. He is the sole proprietorship of the business and provides...
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...Business Organization • Kenya L Allen Course# BUS/210 2/3/2012 Dana LA Fleur My entertainment company, Kytepromotions, pays fines for every little violation for every little incident. Since I am the sole proprietorship of my business, I must pay all the fines and attend courts when needed. I thought about going in to partnership with my uncle because he was the one that should me how to start the business. He is older than I am by a few decades and his ideas of how plan wedding and children birthdays are prehistoric. My uncle first got started by working with merchants dealing with party supplies. He then got me involved by helping with deliveries and that spark my interest. I started my business by having a master plan of becoming the biggest party planner on the west side of Detroit. This took a lot of patience and time; since I did not have any references, it was difficult to rent venues and since my name was not in the public, I had to promote myself. I passed out fliers and got my name across by going on the radio and putting ads in the newspaper. I offered the people that wanted to work for me options like a huge company would do. I let every get...
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...My business organization is a non profit organization that buys houses and fixes them up to sell to low to middle income families. The organization consists of local people in the community whose sole interest is to revitalize abandoned neighborhoods, by giving honest hard working people the opportunity to be able to own their own home. Today’s housing market is overpriced, not every family can afford to live the American dream. The goal of our organization is to give every family the opportunity to be able to obtain affordable housing at reasonable prices. We buy homes that are in old run down neighborhoods because we are able to buy the real estate real cheap. Once the home is finished being renovated, the house goes on the market. The families combined annual income has to be anywhere between $30,000 and $55,000. After the house is sold the organization only makes a profit of no more than $10,000, which is reinvested in another home renovation. Business Rules • Every person will be treated with respect • Total combined income will be $30,000 – 55,000 • Credit checks will be performed on all potential buyers • The organization will profit no more than $10,000 • Background checks will be performed on all potential buyers • Only one home is to be sold per family • No more than 7 houses are to be sold each quarter • Potential buyers will use the organizations financing options • Potential buyers will have to take a 3 hour seminar...
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...1. Three forms of business organizations are sole proprietorship, partnership and corporation. The sole proprietorship is the least regulated of the three. One person who keeps all of the profits owns it. The owner is also financially responsible for the business and its debts because there is not a division between personal and business assets and income. The life span of this type of business is limited to the life span of the owner and the owner’s own assets limit the amount of equity that can be raised. This can really limit the business, as it may not be able to seek new opportunities due to lack of funds. A partnership is a type of business similar to a sole proprietorship but is owned by two or more people. The owners have unlimited liability still, but it is shared. There are a few types of partnerships. In a general partnership the owners equally share the profits and debts. Each partner can be held accountable for the other partner’s decisions and actions relating to the business. When a partner wants out of the business or dies, then the company is terminated. In a limited partnership one or more of the owners is not involved in the day to day activities of the business. Their liability is limited to the amount they invest in the business. If the limited partner wants to get out their share can be sold to a new partner. In each type of partnership, the way the assets and debts are separated is dictated in the formal partnership agreement. The advantages and disadvantages...
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...of license fees paid by the manufacturer. The allocations of the consumer’s fees to Frank and the manufacturer fees to Vila are special allocations. 3. Bill Hewlett and Dave Packard become lose friends during a two-week camping trip. Afterwards, with the encouragement by their professor at Stanford, they started HP. Hey were best friends with similar strengths and management styles; they complemented each other. They created a social, supportive work environment that contradicted the times. Their innovative work ethic enabled HP, its employs and their business partnership to thrive. 4. Kasie opens up “Kasie’s Creations” which is a catering company. She has a team of 10 that assist in prepping and cooking the food, delivering the food to the customers and also serving the food when the situation warrants. The team of 10 work directly for Kasie and she receives all profits and has unlimited responsibility for all business losses and gains. Kasie is he sole...
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...therefore is unlimited liability. A limited liability corporation states that the members of the company cannot be held accountable or liable for the company’s debts or liabilities. An LLC has the combined characteristics of a corporation and a partnership of a sole proprietorship. The limited liability feature is similar to a corporation by the availability of flow through taxation to the members of the LLC. An example of an LLC would be a self-employed business like my brother in laws, Steiny’s Garage. A partnership is two or more people who own a business equally. They share all the responsibility of the business between the members which includes the risks and the rewards. An example of a partnership would be the original Johnson & Johnson Company, before it became and LLC. (Johnson & Johnson) A sole proprietorship is the most common structure when choosing to start a new business. It is an unincorporated business that is owned and ran by one individual. The owner is entitled to all of the profit of the business, as well as the responsibilities of the debts, losses and liabilities. An example would be a small shop owner such as financial planner or plumber. "NYSE, New York Stock Exchange Listings Listings Directory NYSE." NYSE, New York Stock Exchange Listings Listings Directory NYSE. New York Sotck Exchange, 18...
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...My entertainment company, Kytepromotions, pays fines for every little violation for every little incident. Since I am the sole proprietorship of my business, I must pay all the fines and attend courts when needed. I thought about going in to partnership with my uncle because he was the one that should me how to start the business. He is older than I am by a few decades and his ideas of how plan wedding and children birthdays are prehistoric. My uncle first got started by working with merchants dealing with party supplies. He then got me involved by helping with deliveries and that spark my interest. I started my business by having a master plan of becoming the biggest party planner on the west side of Detroit. This took a lot of patience and time; since I did not have any references, it was difficult to rent venues and since my name was not in the public, I had to promote myself. I passed out fliers and got my name across by going on the radio and putting ads in the newspaper. I offered the people that wanted to work for me options like a huge company would do. I let every get a piece of what I started and told them that they would see profits at year’s end. I wrote out in detail how if everyone would invest back in my company like expenses for food and travel that it would pay off. Joint stock in the company I offered them. I never thought of this way. Years have past by now, we were in our 10th year, and things began to fall apart. The...
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...liability company Sole Proprietorship: * Liability – can be held independently legally accountable for any business-related responsibilities. * Income taxes- sole proprietors reports all business income or losses on their individual income tax return -- IRS Form 1040, with Schedule C for small business * Longevity/ Continuity- Sole proprietorships only exist as long as the owner is alive or decides on their own that they want to close it. * Control- Sole proprietorships are completely controlled the owner. * Profit Retention- Sole proprietorships don’t have to split their earnings with anyone. Profit retention of 100% lets sole proprietors to use the money the way they want. * Location- Sole proprietorships can set up wherever they would like * Convenience * No risk of fraud from a partner * Flexible hours * Can be started with little funds, completely up to the owner. * Can be started without lots of capital * Privacy from others * Full ownership and management control * IRS will allow sole proprietorships to take deductions for business expenses which in the end will lower the sole proprietor’s taxable income. * IRS will allow sole proprietorships to avoid being double taxed as a corporation. * Burdens * Owner is fully responsible for all business debts. If the business is not profitable or if a lawsuit ensues, courts may attach debt to the owners personal property * Your...
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...BUS1010 ASSIGNMENT TITLE: The value of business organization creates society. Identify, summarize and discuss arguments against business. INSTRUCTOR: TABLE OF CONTENTS 1.0. Introduction 1.1. What is business? 1.2. Forms of business 2.0. Negative effect/impact of business. 3.0. Conclusion 4.0. References 1.0. Introduction The role and impact of business organizations in any society can be aggrandized to be a major factor leading to the growth and development of economy in various countries across the globe. Business as a human activity has been able to assemble people, capital and innovation under controlled risk-taking, in order to create jobs and produce goods and services profitably which translated to an amount of wealth for business owners, employees, customers and society at large. In Africa, business activities have tremendously contributed to the economic growth experience and these has been boosted by internal and external factors. Internally, the emphases on business organization to create domestic business friendly environments, greater business discipline, have formally written values and principles, and open prospect to transact business globally has led to the growth of the African economy. However, the role and impact of business activities also have negative effects on the society which will be discussed and properly elaborated. 1.1. What is business? The term business does not have a specific definition as it...
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...Forms of Business Organization Forms of Business Organization Have you ever imagined who commences the required capital, takes the accountability of arranging assets and other resources, operates them into practice, and controls and coordinates the operation to earn desired profits? If you search around, you will find a manufacturing business owned and operated by a single individual, who executes all these operations. It is significant for business owner(s) and manager(s) to comprehend the legal environment, in which their business(s) operate, not merely with regard to their own businesses however also as regards to other companies with whom they are doing business. In this context, there are six forms of business organizations, which are discussed below: a. Sole Proprietorship • Control Sole proprietorship is also termed as a sole trader. It is a form of business, which is owned and controlled by single individual and is the simplest form of business organization. The single owner of business has entire ownership and control over the assets and capital invested in the business and he or she is individually responsible (subject to some restrictions) for the expenses and liabilities of the business. • Liability A different advantage, nonetheless, is that the proprietor of this business form is responsible for all the business liabilities. Therefore, if a sole owner business undergo into financial crisis, creditors can originate lawsuits against the sole proprietor...
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