profit (or loss) of the business. •Whether or not you need to re-invest earnings into the business. •Your need for access to cash out of the business for yourself. An overview of the four basic legal forms of organization: Sole Proprietorship; Partnerships; Corporations and Limited Liability Company follows. Sole Proprietorship The vast majority of small businesses start out as sole proprietorships. These firms are owned by one person‚ usually the individual who has day-to-day responsibility for
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business‚ the limited liability company (LLC) or a limited liability partnership (LLP)‚ which combine the best features of a partnership and a corporation. In 1988‚ the Internal Revenue Service (IRS) ruled that the LLC may be treated as a partnership for tax purposes‚ while retaining its limited liability for its owners. Since this ruling‚ every state has passed legislation permitting limited liability companies. A limited partnership consists of general partner and limited partner. Limited partners
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Unit 143 1.1 Identify the features of effective partnership working. Any information that is shared with other partnerships is for the benefit of the child and their family‚ by partnerships working together and gathering all the information together it builds a bigger picture of the child’s lifestyle . Each partnership may see different things in their visits to the family or when the child goes to settings and clinics. So by all working together they can implement and plan for all needs not just
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Business There are three types of partnerships - a general partnership‚ limited partnership‚ and limited liability partnership. General partnerships consist of two or more partners who are both responsible for the business. They share the assets and profits‚ as well as the liabilities and management responsibilities for running the business. A business owner may opt for either a limited partnership or a limited liability partnership. In a limited partnership‚ there are one or more general partners
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Sole Proprietorship Sole proprietorship is the most common form of business in the United States. It is a relatively simple way for an individual to start a business since legal costs and business requirements are minimal‚ and the owner has complete control over the business. Though a sole proprietor is not responsible for any corporate tax payments‚ the owner is responsible for taxes incurred on the income generated from the business as part of his or her personal income tax payments‚ and personally
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Organizational Forms A. Explain how at least six of the seven key characteristics listed in the introduction to this task apply to each of the following organizational forms: The goal of this report is to provide the owner of the business with a clear guide to each organizational form as well as how each characteristic applies to each form. A1a. Sole proprietorship A sole proprietorship is a business form in which one person is the owner of the business. Within this form the owner has no
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business structure they will adopt. A business structure is the legal form of a business organisation. • The most common types of business structure are: – the sole trader‚ – the partnership ‚ and – the company. • Note that these business structures are not mutually exclusive. Two or more companies‚ for example‚ can form a partnership. Business structures continued • The person’s choice of business structure will have important consequences in terms of: – the ease and cost of setting up the business‚ –
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HUTECH & OUM MBAOUM0512 INTAKE : MAY 2012 – OCTOBER SEMESTER 2012 STUDENT NAME: CHU THI HONG TUYEN ID No.: 2448481 BMLW5103 – BUSINESS LAW ASSIGNMENT Question 1 Discuss the enforceability of an agreement which lacks consideration. Using legal authorities (relevant statutes and cases) to support your discussion. Answer: A valid contract is an agreement made between two or more parties that creates rights and obligations that are enforced by law. What does the consideration mean? And what does it
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scenarios in which each of these forms of business would be the preferred form. This paper will also justify why the corresponding business form is preferred. The forms that will be discussed are: sole proprietorship‚ partner‚ limited liability partnership‚ Limited Liability Company‚ S corporation‚ franchise‚ and corporate form. Sole Proprietorship A Sole Proprietor is someone who owns a business by himself or herself. The sole proprietorship is the oldest‚ most common‚ and simplest
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general partnership. D. limited partnership. E. limited liability company. 7. A business formed by two or more individuals who each have unlimited liability for business debts is called a: A. corporation. B. sole proprietorship. C. general partnership. D. limited partnership. E. limited liability company. 8. The division of profits and losses among the members of a partnership is formalized in the: A. indemnity clause. B. indenture contract. C. statement of purpose. D. partnership agreement
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