Wk5 Individ

Business Entities, Laws, and Regulations Paper To start a logical argument at once raise be very difficult. Investors accept to lay aside a plan before string outing the doors. immediately we depart review article three business scenarios to take to in what direction they need to follow. The first one is Lous and Joses plan to open a restaurant/ banding second is the Akivas and Taras plan to open a clinic, and last we will review Mei-Lins hiring scenario. We will jump with the Lous and Joses scenario. restaurant/Bar: In the business scenario where Lou and Jose ar opening up a restaurant and bar, their dress hat entity choice would be partnership. This is because the investor Mariam, Lou, and Jose ar the only key players in this startup, and they will receive a certain percentage of ownership. Although Jose and Lou be taking care of the perfunctory activities of maintaining the place, the co partner Miriam will continue to contribute by investments. Even though Mi riam is the mend investor, he will delight in Jose and Lou to help catch daily business activities because he will be share the profit with them. A general partnership, or partnership, is a automatic association of two or to a greater finale persons for carrying on a business as co-owners for profit. (Cheesman, pg.253z) In partnership, decisions are reviewed and approved with all parties.

For this scenario, Mariam does not shed control because he is only investing money and not helping cut the operation. In taxation of general partners, partnerships do not remedy federal taxes. Through flow-through taxatio n, each partner has to report their troth ! and losses on their own yearly income tax report. This way, the governance tax authorities can trace whether partners are puissant reporting their income or losses (Henry Cheeseman. 2010, p. 255) In liability issues, what Lou, Jose, and Miriam grant is a limited partnership agreement. Lou and Jose are the general partners while Miriam is the limited partner. For general partners, they have unlimited...If you want to get a full essay, order it on our website: BestEssayCheap.com

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