Business Structure Advice
Business Structure Advice
Name
University of Phoenix
FIN/571
J. Woods
December 4, 2013
Business Structure Advice
Dear John Owner,
Our consulting office received your letter in quest of advice on how to establish a business and develop a business plan. The Name Consulting Company will work hard to create a plan to advice your company on how to form a business, whether or not to take on partners as well as other options. Our team will assist with the establishment of your new company’s business plan, the crucial financial choices, and finalize legal actions. The above steps will assist with preparing a solid business plan and managing a successful business.
The Steps to develop a business plan
Step one is to write …show more content…
The sole proprietorship, the partnership, the corporation, and the LLC/LLP are the four basic practices in which for-profit businesses can be organized. Practices have associated advantages, disadvantages, and tax consequences. A sole proprietorship is the most stress-free and low-cost business stricter of the three. The business owner has total control over their business as a sole proprietorship; this partnership is usually not a married couple. The advantage it is easy to start up and the disadvantage is the owners are held legally …show more content…
There are general corporations, Subchapters, S corporations, and limited liability corporations. An advantage of a corporation is that your individual resources are not threatened from business liabilities; however, the disadvantage is that this business structure is more complex and difficult to run.
The LLC is a combination of a corporation but has the safeguard of a personal liability of a business debts and the tax structure of a partnership. LLC’s have more flexibilities when concerning taxes and also have more elasticity in the way the business structure is organized. However, “A few types of businesses generally cannot be LLCs, such as banks and insurance companies and there are special rules for foreign LLCs” (IRS.gov, 2013).
Name
University of Phoenix
FIN/571
J. Woods
December 4, 2013
Business Structure Advice
Dear John Owner,
Our consulting office received your letter in quest of advice on how to establish a business and develop a business plan. The Name Consulting Company will work hard to create a plan to advice your company on how to form a business, whether or not to take on partners as well as other options. Our team will assist with the establishment of your new company’s business plan, the crucial financial choices, and finalize legal actions. The above steps will assist with preparing a solid business plan and managing a successful business.
The Steps to develop a business plan
Step one is to write …show more content…
The sole proprietorship, the partnership, the corporation, and the LLC/LLP are the four basic practices in which for-profit businesses can be organized. Practices have associated advantages, disadvantages, and tax consequences. A sole proprietorship is the most stress-free and low-cost business stricter of the three. The business owner has total control over their business as a sole proprietorship; this partnership is usually not a married couple. The advantage it is easy to start up and the disadvantage is the owners are held legally …show more content…
There are general corporations, Subchapters, S corporations, and limited liability corporations. An advantage of a corporation is that your individual resources are not threatened from business liabilities; however, the disadvantage is that this business structure is more complex and difficult to run.
The LLC is a combination of a corporation but has the safeguard of a personal liability of a business debts and the tax structure of a partnership. LLC’s have more flexibilities when concerning taxes and also have more elasticity in the way the business structure is organized. However, “A few types of businesses generally cannot be LLCs, such as banks and insurance companies and there are special rules for foreign LLCs” (IRS.gov, 2013).