Comparisons Business Form Comparisons Western Governors University The different forms of business are sole proprietorship, which is already in use by the client; general partnership; limited partnership; c-corporation; s-corporation; and Limited Liability Company. The client is currently unsatisfied with the sole proprietorship, which is the easiest type of business to begin and to run, but which doesn’t fit the client’s needs any longer, since the business
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Whether or not you need to re-invest earnings into the business (5) Your need for access to cash out of the business for yourself From a legal perspective, businesses are organized as one of the following: Sole Proprietorship, Partnerships, and Corporations. Small businesses are an important source of new (and often well paid jobs). In recent years, small business has accounted for 40 percent of all new jobs in high technology sectors. (Business Essentials, Seventh Edition, n.d
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all obligations of the business Partnership In contrast to general partnership law, a limited partnership is not dissolved by the death of a limited partner, and a limited partner may not compel dissolution of the partnership absent contrary provisions in the partnership agreement partners in general partnerships are jointly and severally liable for all obligations of the partnership, including losses or injuries caused to any person by the wrongful acts or omissions of any other partner
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numerous choices to make I hope to make the decision less hectic by discussing some advantages and disadvantages of three of the most common forms that may be right and profitable for the business. The three legal forms are: (sole) proprietorships, partnerships, and corporations. Sole proprietorships are owned by an individual who makes all the decisions about the business and therefore, pockets the revenue that is made. Sole proprietorships are the most common form of business that represents one individual
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| | |Partnership | A general partnership | Partners | Tort liability: | the usual rule is that| Partnership does not | | |is a business entity in | |Partnership is liable |the death or withdrawal|pay federal income | | |which two or more | |for tortuous act of a |of one of the members |taxes, partnership | | |co-owners
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Sole Proprietorship: There is no legal difference between the Sole Proprietorship and the owner. They are easy to create and can mature as quickly or slowly as the owner wants. There can only be one owner and raising capital can be difficult, so they seek funding from financial institutions. ● Liability The Sole Proprietor is personally responsible for all debts and obligations. Creditors can claim personal assets of business owners and can sue if there is a breach of contract. Income Taxes
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(Cheeseman, 2010, p. 530). A sole proprietor owns all off the business therefore he or she receives all of the profits. Most importantly if the sole proprietor wishes to sell or transfer the business no other approval is necessary (Cheeseman, 2010). Partnerships are a business form that consist of two or more people coming together to form a business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business (Georgia Trend, 2006/2007).
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Formation Of A Legal Firm Name: Institutional Affiliation: Date: In the current century, it is evident that numerous changes have been observed in the law firm business. The traditional law firm practice model has as a result been passed by time and firms or any person attempting this model have always found themselves struggling in this dynamic market. The traditional law practice has also been marked by constant consternation as the law firm does not produce good results. The
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Form Department of the Treasury Internal Revenue Service A Principal business activity B Principal product or service 1065 U.S. Return of Partnership Income For calendar year 2011, or tax year beginning ▶ OMB No. 1545-0099 , 20 . , 2011, ending See separate instructions. 2011 35-4545454 01-15-2008 Name of partnership D Employer identification number ZLW GP C Business code number Print or type. Number, street, and room or suite no. If a P.O. box, see the instructions
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CHAPTER 15 Accounting for Partnerships CHAPTER OUTLINE Partnership Accounting Partners’ Accounts Ownership Changes Partnership Liquidation Instalment Liquidation Plan of Cash Distribution to Partners Summary Review and Multiple Choice Questions, Case, and Problems LEARNING OBJECTIVES After studying this chapter, you should be able to do the following: • Describe the advantages and disadvantages of the partnership form of organization. • Explain where the major differences lie in the accounting
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