business entity. In India one can choose from five different types of legal entities to conduct business. These include Sole Proprietorship‚ Partnership Firm‚ Limited Liability Partnership‚ Private Limited Company and Public Limited Company. The choice of the business entity is dependent on various factors such as taxation‚ owner liability‚ compliance burden‚ investment and funding and exit strategy. Lets look at each of these entities Sole Proprietorship This is the most easy business entity
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the liability for real estate excise tax‚ a partial repeal of an exemption for amounts received
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To Form an LLC or Not A limited liability company (LLC) is one of many ways to formally structure a business. The best way to describe an LLC would be as a cross between a sole proprietorship/general partnership and a corporation. “The "LLC" has only been in existence for roughly 26 years and there are some definite pros and cons” (Chapo‚ 2007). Advantages of LLCs There are many benefits to forming an LLC. They are easier and less expensive to start than other forms of business‚ but not every
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from its owners; it is an artificial being under the law. 2. What does the phrase limited liability mean in a corporate context? Limited liability refers to the amount of liability an owner has. The owner is only liable for the amount they invested in the corporation. 3. Which organizational forms give their owners limited liability? LLC and limited partners in a partnership have a limited liability. 4. What are the main advantages and disadvantages of organizing a firm as a corporation
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LIT1 Task 310.1.2-01-06 Part A Sole Proprietorship - • LIABILITY – There is no separation between the individual and the business. As the owner and operator of a sole proprietorship‚ all of the profit and loss is the personal responsibility of the business owner creating unlimited liability. • INCOME TAXES – As a sole proprietor all business income or losses must be reported as personal income tax. The business itself is not taxed separately. • LONGEVITY/CONTINUITY – The sole proprietorship
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that is a sole proprietorship. There are two different types of partnerships‚ General Partnership and Limited Partnership. A General Partnership is a written agreement between two or more people. Each partner contributes money‚ property‚ labor‚ or special skills and each partner shares in the profits and losses from the business. The advantages to having a partnership are that General Liability advantages are that it has fewer regulations and are under less government supervision than corporations
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1.5.2: An Illustration of the Conceptual interpretation of Limited Liability versus lifting the veil: The decision in Salomon V. Salomon & Co.23 The case of Salomon V. Salomon & Co.‚ commonly referred to as the Salomon case‚ is both the foundational case and precedence for the doctrine of corporate personality and the judicial guide to lifting the corporate veil. The House of Lords in the Salomon case affirmed the legal principle that‚ upon incorporation‚ a company is generally considered to be a
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The 4 forms of organization are Sole Proprietorship‚ Partnerships‚ Corporations and Limited Liability Company. Each of these organizations operate differently with advantages and disadvantages to it. Sole Proprietorship: A sole proprietorship is a small business that is own by one individual who is responsible for running the business. The owner owned all profits and assets but is also responsible for all liabilities and debts. The advantage of a sole proprietorship is you are at complete control
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(1) Sole Proprietorship- A business that is owned and usually managed by one person; it is the most common form. (2) Partnership- A legal form of business with two or more owners. (3) Corporation- Is a legal entity with authority to have liability separate from its owners. (4) Franchisors-Owns the overall rights and trademarks of the company and allows its franchises to use these rights and trademarks to do business. The entity or person owning the rights or license of the business.
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addition‚ the plaintiff can point out the negligence in the hiring process of the company‚ where despite knowing that Chuck had faced charges of assault in the past‚ the counseling company chose to overlook... [continues] XYZ Counseling Agency‚ a Limited Liability Company‚ hired Chuck as an anger management counselor. Two months ago during a counseling session with a client named Wilbur‚ Chuck became very angry at Wilbur’s failure to improve and beat up Wilbur. A week earlier‚ XYZ Counseling had counseled
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