Starting and Naming a Business Essay

The business entities of corporations and partnerships share many similarities, however key difference exist, primarily in terms of formation, taxes and liability. This section will largely address the issue of liability, in terms of the effects of damages, disclosure requirements and personal liability for both corporations and partnerships. Additionally Amazon will be examined as a partnership rather than a corporation to further illustrate these differences.

I aim to advise the family in a way that honors God and allows them to set up this business in a way that honors God as well. The Bible instructs us all in Colossians 3:23-24 that “whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ” (ESV). The siblings must know that regardless of the business form they choose to operate by, they will be held accountable for this company and its activities. Even though their goal is to choose a business form with limited liability and lower their tax burdens, they will still be responsible to pay taxes and debts owed by the company. Proverbs 27:17 says “Iron sharpens iron, and one man sharpens another” (ESV). Alex, Bill, Carl, and Devon will be called upon to sharpen one another to display Christ to others through sound business practices.

While doing some research I found that a franchise agreement is a binding legal contract that is signed between a franchisor and franchisee. A franchisor is the company owning the rights to grant franchises to franchisees, while a franchisee is a person or entity who is given the right to conduct business by a franchisor or licensor. The most important definition however is that of a franchise which is an authorization granted by the government or company to an individual or group allowing them to carry out certain commercial activities.

Liability All liabilities are the responsibility of each partner. In the event of litigation, any creditors can go after the personal assets of each partner to recover any debt owed. But since liability is spread out between the owners, one may feel less risk is being taken. 2. Income Taxes General partnership may also benefit from pass-through taxation, meaning the partners are taxed like sole proprietors. Business income is reported on the personal tax filing while business losses can be deducted to reduce personal tax liability. The partnership itself is not subject to federal income tax. However the partnership needs to file an information return utilizing the IRS Form 1065. 3. Longevity or continuity of the organization Once the partnership agreement is fulfilled, the general partnership may dissolve. A buy/sell agreement may be included in the articles of the partnership to allow the

In case of breach of contract liability shall be limited or unlimited depending on the type of activity. There are five types of business organizations in the United States. These forms are sole proprietorship, a partnership, limited liability company, partnership, and limited liability company. Each of these formations business has advantages and disadvantages for the employer. There are different levels attributed to the owners and partners in each of these forms of business organization responsibility. As for the different levels of responsibility that owners and partners can help in selecting the appropriate form

This protects the limited partners from the full liability that is shared by the general partners.   Income Taxes – The limited partner’s profits are considered personal income and taxed as such. All profits from the limited partnership are considered personal income and taxed at their personal tax rates.  Longevity / Continuity – The continuity of the business is not affected by the death or disassociation of a limited partner.  An advantage for a limited partner is that the limited partner’s investment takes priority in the general partnership dissolves due to a death or disassociation of one of the general partners.

A1d: A C-Corporation is a business form in which the ownership and the company are seen as legally separate entities.

* Limited Liability - Unlike partnerships and sole proprietorships, corporate shareholders are not liable for any of the corporation's debts.

Miss Jackson is planning on opening a coffeehouse in the Denver, Colorado area. Her plan is to use her Christian background and apply it towards her company. Despite the exciting new venture she’s willing to partake, her husband Marvin is not excited and shares no interest in partaking it the Coffee shops operations or management. Shania Jackson is considering organizing her business as a partnership, sole proprietorship, joint venture or an LLC. Shania is also contemplating on calling her business the gathering house. Prior to recommending what actions Shania should take, I will study and explore each of her possible business considerations and offer her Christian advice.

Limited partnership: Owners are distinguished as either general or limited partners. Limited partners are only liable about their contribution to the partnership involving funds, equipment and other property.

Starting a business is the latest trend. Just take a look at Instagram. Several profiles have the caption ‘Entrepreneur’. At this very moment, there is someone, somewhere working on an idea, a business plan or launching a startup. Entrepreneurship is on the rise like never before. The flexibility and independence that comes with being one’s own boss is attractive and worth taking the leap in starting a business. However, most people don’t know that being an entrepreneur is a grueling journey that can be very lonely and stressful at times. According to the Small Business Administration (SBA), 50% of businesses fail during the first year. Starting a business can be a scary task, but the

Despite being an intimidating prospect for most people, there are millions of entrepreneurs in the US. Some of them turn out to be very successful, others, not so much. There are many steps to starting and running a business, but many of them can be easily accomplished simply by filling out some forms, and several small fees.

Corporations are a different type of business. They are more complex to start because more paperwork is involved and the corporation generally has to be registered at the state level. An ordinary corporation is formed through the articles of incorporation. These corporations are legal entities, and therefore bear legal responsibility. The shareholders of the corporation do not bear legal liability. In addition, corporate income is taxed differently it does not flow through to the owner's personal income tax statements. The

There are several crucial factors to consider when starting a business. First, one must consider choose the type of company they want to start, for example, a limited liability company. A limited liability company is an unicorporated method of doing business that gives its members limited liability and permits them to actively take part in management of the company. The second factor to consider is the state in which the business will be registered. Different states have different requirements for forming a limited liability company. Additionally, the advantages and disadvantages of forming a limited liability company vary across different states. This paper will discuss the requirements for forming a limited liability company in the state

Shania Jackson is interested in starting a Christian coffeehouse near Denver, Colorado. A few family members and an acquaintance, both believers and nonbelievers, have expressed interest in investing and become a part of her business. She has researched franchise opportunities with various stipulations as a method for starting her business. She is also considering naming her business “The Gathering Place”.