Types of business entity

new business ventures, they usually can house their operation under one of several basic entity types. These entities differ in terms of their legal and tax consideration and each has advantages and disadvantages from both tax and nontax prospective. Therefore, it is important to know what type of entity is the best option before opening a new business and it is really depends on the goals, outlook and strategy for that particular business and its owners. Generally, for tax purpose business entities

Three basic forms of business organization are sole proprietorship, partnership, and corporation. Sole proprietorship is the simplest form of business organization in which there is only one owner (Cheeseman, 2015, p. 570). Single person is responsible for all debts, liabilities, and obligations, as well as unlimited liability for business operations. If the owner is unsuccessful and acquires debt, creditors can pursue legal action and acquire access to personal bank accounts, real estate, and other

partnership (LLP) is another type of partnership. LLP is “a partnership consisting of one or more general partners and one or more limited partners” (p. 554). “It was created to limit the personal liability of the partners of "losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision” (Nickels, McHugh, & McHugh, 2013, p. 119). This business form also “allows a partnership to continue as a pass-through entity for tax purposes” (Miller

When you start a business, you must decide whether it will be a sole proprietorship, partnership, corporation, or limited liability company (LLC). In order to open a daycare center within your home, you have multiple business entity types to choose from, ranging from a sole proprietorship to a limited liability company to a full-fledged professional corporation. A cursory glance over the list of day care centers on the web reveals that most are LLCs, which offers multiple distinct advantages over

Alex, Bill, Carl, Devon, and Xavier are all Christians and want their business to be organized and operated in accordance with the Christian worldview. Alex, Bill, Carl, and Devon father ran the business as a sole proprietorship, but they want to form a business entity to own the farm. I am going to be their accountant to help run their business the proper way and right way as Christians should. They are trying to avoid a lot of paperwork, but they also wants to allow their cousin Xavier to handle

A Corporation, which is sometimes called C Corporation, is a group of company or an independent legal entity owned by shareholders and authorized by state, with a separate and unique existence from its owner. Lau & Johnson (2011, p. 195) It is more elaborate than the other business forms due to the fact that it is costly to set up, involve corporate tax and legal requirement. They offer the capacity to sell ownership shares in the company through stock and to the public through initial public offering

A corporation is like a legal entity that can be effectively recognized as a person under the law. The corporation may be a non-profit organization or a business. It is not affected by the death of any member. A sole trader is the most simple structure of business. This structure is less expensive to set up because there are very few legal and tax formalities. Operating your business as a sole trader means you trade on your own and control and manage the business. In Private Limited Company there

These sections relate to a business which includes any trade, occupation or profession that is carrying on involving continuity and system in common in terms of mutuality of rights and obligations with all the partners, and lastly with a view to profit, therefore resulting in an incorporated limited partnership. A corporation, however, is defined as a separate legal entity from its owners that also has the rights and responsibilities that an individual or a partnership entity possesses. This means that

Choosing the Right Business Entity By Rosa Martinez Professor Smith English 315 February 24, 2012 TRANSMITTAL TO: Small Business Owners FROM: Rosa Martinez DATE: February 24, 2012 ------------------------------------------------- SUBJECT: Choosing the Right Business Entity ------------------------------------------------- Enclosed is the Justification Report covering information related to different types of entities that could be chosen to establish a business. Furthermore, the

DISCUSSION BOARD FORUM 3 CASE STUDY ON BUSI 561 STARTING AND NAMING A BUSINESS Shania’s is confronted with lots of decisions to make before she opens up her Christian coffeehouse near Denver, Colorado. The challenges awaiting Shania are the type of business structure to open and type of people to work with. Shania as a Christian should refer to Roman 8:28, “And we know that all things work together for good to them that love God, to them who are the called according to purpose. She should therefore