6-1 Milestone 3: Week 6 Discussion
By Johanna Westerh
Jeb and Josh are best friends who decide to open a sporting goods store that also provides day trips for whitewater rafting, rock climbing, and camping trips. Jeb will provide the money to finance the store and Josh will run the store and split the profits in half. Unfortunately, a customer fell from a raft during a trip and ends up suffering from a head concussion and injuries her spine. And Jeb becomes bankrupt because his other business ventures fail. In conclusion, the business failed. There are three types of business entities: sole proprietorship, partnerships, and corporations. Sole proprietorships are businesses owned by an individual person. They are easy to form, but are not taxed. Instead the individual business owner is taxed on any monies acquired on behalf of the business (Kubasek, 2012. Partnerships are businesses that are owned by more than one individual owners. The big thing about partnerships is that each partner is personally responsible for the acts of the other partners in the business . (Kubasek, 2012 Corporations are businesses owned by multiple people to include shareholders (Kubasek, 2012). They can sue and be sued and are subject to a host of rules and regulations set forth by the government.
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Proprietorships
Advantages
a) It is easy to create.
b) The individual owner has full control.
c) The individual owner keeps all the money.
Disadvantages
a) The individual owner is responsible for all losses.
b) The individual owner is limited to personal money and loans when it comes to funding the business.
Partnerships
Advantages
a) It is easy to create.
b) The business income is considered personal income
c) Financial losses can be written off during tax time.
Disadvantages
a) Partners are held personally responsible for the actions of the other partners in the
Q.1 - Using the assigned readings, provide an analysis of Roizen’s network. What kinds of networks does Roizen build? What do they look like?
An act to amend Virginia code 20-124 paragraph two, point three and subsection F of 63.2-1202 in regards to subsection A of 18.2-61 to apply not only to convicted persons but also to an accused person when there is clear and convincing evidence of rape (Definitions; Megison; Rape; Parental, or agency, consent required; exceptions).
Case #11802, for Member Kathleen Allen involved concerns with DENCAP as well as Harbor Choice; therefore it was forwarded to Steven Palmer, Internal Lead Consultant and Account Manager at DENCAP on 2/8/2016 and to Kathy Howard, Director of Customer Service at Harbor Choice. Malytha Williams, Healthcare Regulatory Liaison – Exchange placed a call to Ms. Allen on 2/16/2016 to follow up with her regarding Case #11802 and spoke with Ms. Allen’s sister Mary Ann
The last business option that will be discussed is the Corporation. A Corporation is “a fictitious legal entity that is created according to statutory requirements” (Cheeseman 478). The biggest advantage of a corporation is the protection of personal assets. Shareholders, directors and officers are typically not liable for the company’s debts and obligations. This is limited to the amount of money they have invested into the corporation. Since the corporation is separate from the owners, transfer of ownership is an easy task. Also corporations are generally taxed at a lower rate than individuals in the United States. A corporation is not as simple to form or maintain as other business formations. Articles of incorporation must be filed with the secretary of state and an organizational meeting must be held to elect a board of directors. A corporation also requires, at the least, an annual report so that creditors that do business with the corporation can determine the creditworthiness of the corporation. Also the corporation is taxed on its profits
One of the most defining elements of a new business is the business structure it assumes. This will determine the liability of its owners, how the company and its owners are taxed, how profits and losses are distributed and the company's management structure. For this reason, it is essential that new companies evaluate each type of business structure as it applies to their company's needs and chose a structure accordingly. In the instance of Joe and Jill Smith, a married couple who are opening a restaurant, a limited liability company would be the ideal structure for their business as it allows the owners to be taxed only once, provides liability protection for the owners, allows the business to grow while staying family owned and the paperwork is simple. As a limited liability company, the Smiths will benefit from the pass-through tax structure unique to this form of organization. According to the Internal Revenue Service, "the federal government does not recognize an LLC as a classification for federal tax purposes. An LLC business entity must file a corporation, partnership or sole proprietorship tax return" (Internal Revenue Service, 2012).
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.
Choosing a business entity has long reaching considerations. One of the most important aspects of this choice is the resulting taxes that your business (and you) will have to pay. Each type of business entity is subject to a different form of taxation. Some entity forms have better opportunities to
An own family commercial enterprise may be organized as a partnership, limited legal responsibility employer (LLC), an S business enterprise, or as a C organization. even though a C employer has the biggest tax benefits, any dividend profits will be the challenge to double taxation. furthermore, S and C groups are greater complicated business entities and extra taxes, which includes the nation corporate franchise tax, could additionally be paid. A limited legal responsibility corporation with 2 or extra participants is taxed as a partnership, and while preferred partnerships are clean to arrange, they are able to have complex tax consequences.
A own family commercial enterprise may be organized as a partnership, limited legal responsibility employer (LLC), an S business enterprise, or as a C organisation. even though a C employer has the biggest tax benefits, any dividend profits will be challenge to double taxation. furthermore, S and C groups are greater complicated business entities and extra taxes, which includes the nation corporate franchise tax, could additionally must be paid. A limited legal responsibility corporation with 2 or extra participants is taxed as a partnership, and while preferred partnerships are clean to arrange, they are able to have complex tax consequences.
Tax payers, who are business owners, including the self-employed, have choices regarding how to set up their entity for tax purposes. Generally, the following options are available for tax payers:
Company has many advantages and disadvantages. One of the greatest advantages is limited liability whereby the shareholders only risk whatever amount they invested to the business and does not risk their personal possession in case if the business fails. Unlike sole proprietor and partnership are each liable for all the debts of the business (unlimited liability). For example, if the asset of the sole proprietor and partnership cannot settle the debt, the creditor can go after their personal asset (i.e house, bank account etc). On the other hand, the shareholder, investor or partner are not liable if the company runs out of funds.
A sole proprietor is the most modest and common structure chosen to start a business (SBA, 2016). Someone who owns an independent business is usually a sole proprietor. They are no legal action needed to form a sole proprietorship. Sole proprietors are entitled to all profits and are responsible for all your business’s debts, losses and liabilities (SBA 2016).
1-1 a. A proprietorship, or sole proprietorship, is a business owned by one individual. A partnership exists when two or more persons associate to conduct a business. In contrast, a corporation is a legal entity created by a state. The corporation is separate and distinct from its owners and managers. b. In a limited partnership, limited partners’ liabilities, investment returns and control are limited, while general partners have unlimited liability and control. A limited liability partnership (LLP), sometimes called a limited liability company (LLC), combines the limited liability advantage of a corporation with the tax
Small proprietary company- A small proprietary company is created when 2 of three of these conditions are met: consolidated revenue for the financial year is less than $25 million; value of consolidated gross assets at the end of the financial year is less than $12.5 million; the company has less than 50 employees.
a) Firstly, we need to match its depreciation to revenue still being earned from the theater, small stores, and apartment buildings, until the building gets razed. This demonstrates that Archer Company’s intentions when purchasing the land and buildings, was to raze the old building and construct a combined hotel and