Case Study Of Shania Should First Think About Key Business Decisions Asking Questions

As a hybrid of partnerships and corporations, LLC’s provide limited liability for debts and flexibility to be taxed as a partnership or corporation (Staring and Naming a Business Presentation, 2012, Slide 5). Some specific advantages include being empowered authorities in the management of the business, diversity of members, limited liability, pass-through taxation, and less paperwork (appreciated by many). A drawback of this business structure is the need for a tailored operating agreement that specifies the specific needs of the

The benefits of Partnership Company are that business is anything but difficult to build up and start-up expenses are low. There is more capital accessible for the business. Workers that are of high-bore are made accomplices. The burdens are that the obligation of the accomplices for the obligations of the business is boundless . There is additionally danger of differences and contact among accomplices and administration. Every accomplice is an agent of the partnership and is at risk for activities by different accomplices. This means that it brothers choose this type, they will be responsible for each other’s action irrespective of the fact whether they like it or

Our business is a partnership type of business because it’s owned by two people. Through our partnership, we will increase the level of our business, making decisions and implementation of changes can be fast, and we cover each other for holidays and

When it comes to partnerships Alex, Bill, Carl, and Devon will have two options- a general partnership or a limited partnership. Partnerships are beginning to be a business form of the past. Once upon a time, partnerships were “the default form of business and provided the benefit of pass-through taxation, but lacked the important feature of limited liability” (Chrisman, 2010, p. 465). In a general partnership, each partner associated with the entity will be held liable for their own business decisions as well as

It would also be beneficial to set up a limited liability company. (LLC) A LLC limits the partner’s liability to your basis in the company

Besides the sole proprietorship after reading I learned about three basic types of business organizations known as limited liability (LLC), partnership, and corporation. Sole proprietorship is a “business owned and operated by a single person. The business has no separate legal existence from its owner.” (Rogers, 2012) In the textbook it said “Partnership is an association of two or more competent persons to carry on a business as co-owners for profit. The business itself is not a legal entity.” (Rogers, 2012) The law says competent means a partner having contractual capacity and a partnership where each partners simultaneously a principle and agent. You can partner up with a minor but be wise to emancipation or be cautions because minors can void partnership agreements. Partners of a business are owners and managers automatically unless specified otherwise by partners but according to the law they presume equal rights. “Note that while there can be unprofitable partnerships, there is no such thing as a nonprofit partnership. The partners must intend to make a profit.” (Rogers, 2012)

She is having a tough time choosing between whether she should sell the business, or manage the business herself.

First, I would tell Shania she should create her business organization by sole proprietorship. According to the U.S. Small Business Administration (n.d.), sole proprietorship is an unincorporated business owned and run by one individual with no distinction between the business and the own. Due to Shania’s husband Marvin having no interest in contributing to the business, Shania would be the only owner. However, since Marvin is making a contribution to the capital to the business I would have them both pray about this decision. With a sole proprietorship, Shania would be entitled to all the business income, debts, losses and liabilities. Marvin would have to have trust and

Eric, being a Christian has decided an LLC will help him maintain his Biblical conviction that a Christian should not be unevenly yoked with non-Christians in business, as much as in marriage. “Since an LLC acts as a separate legal entity, LLC members and managers may operate the company without jeopardizing their personal assets. LLC members and managers have limited liability protection against lawsuits, court judgments, business debts and other obligations. LLCs also grant the same limited liability protection as a corporation, and the personal creditors of an LLC member may not pursue the company 's business assets in an attempt to recover personal debts. That does not mean an LLC owner, member, is not liable for business losses, judgments and lawsuits up to their ownership interest in the company. It does mane that unlike a partnership or a sole proprietorship, the

Jennifer and I had some similarities and differences in our discussion post. We both recommended sole proprietorship for Shania’s business. Sole proprietorship is an unincorporated business owned and ran by one individual with no distinction between the business and the owner (U.S. Small Business Administration, (n.d.). We both agree that since Shania’s husband, Marvin has no interest in contributing to the business, her being the sole business owner would be most appropriate for her business goals. One point Jennifer made about the business was that once it takes off, Shania needs to expand location, products, etc., she could also form a partnership when that opportunity arises. Jennifer makes a valid point because Shania does not always

This leaves sole proprietorship and partnership business models because they fit into Shania 's strategic needs. Partnerships require drawing an agreement between entities on roles, responsibilities, and revenue sharing rations even in times of losses. Every partner is required to have some form of legal liability relative to the business functions in accordance with state laws. On the other hand, sole proprietorship requires registration and its registered owner is liable, at the same time, enjoys all profits from the business. Both business forms are easy to register even though their management, working, and regulatory procedures differ (Blais, 2011).

​I think that Shania should enter into business with her sister Kelsey. Yes, Kelsey is married and her husband rejects the idea of her going to work. However, Shania should give Kelsey a work-life balance schedule which will allow her to work and be home with her 13 and 15 year old when they get home from school and on weekends. Kelsey is a new Christian who loves the Lord and honors and respects her husband. She obviously takes care of her family, otherwise her husband wouldn’t have a problem with her going to work. I believe that if her husband gives it a chance, he’ll be proud of Kelsey. Proverbs 31:10-12 says “Who can find a virtuous woman and capable wife? She is more precious than rubies. Her husband can trust her, and she will greatly

After the creation of a business plan, the next step to operating a business is the selection of an appropriate business structure. Different legal forms of business ownerships affect different managerial and financial factors from the business names to the tax obligations (Gregory, n.d.). The most common forms are sole proprietorship, partnership, cooperatives, and corporations. There are different types of corporations in the business world, but the two most general corporation types are S Corporation and Limited Liability Company (LLC) (Ferrell et al., 2013). The sole proprietorship is the easiest and most basic form of business ownership. It is owned and run by one individual, which is the proprietor. The individual is entitled to all profits and is responsible for all the business’s

Peter Nicholson wishes to convert the factory in the north east to production of the electric taxi. Using data in Appendix C, Table 1, calculate payback period and the average rate of return.

There are a number of forms of ownership that the business can take. The main forms are sole proprietorship, partnership, Limited Liability Corporation, corporation and S corporation. There are advantages and disadvantages to each of these forms that will be discussed in this section. A sole proprietorship essentially has the person as the business. In this situation, the proprietor bears all of the risk involved in the business. Business income flows through to the proprietor's personal taxes. For some individuals there are tax advantages, but for many the appeal of the sole proprietorship is its simplicity. The IRS defines a partnership as a relationship existing between two or more individuals who joint to carry on a business. Partners divide income according to their own agreement and that income flows through to their personal taxes. Partners also have a high level of liability for any legal action that befalls the company.