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Added for You - Legal Structures
Learn From Others So You Can Do A Better Job Of Pursuing Your Goal(s)Take a look back at the rapid advancements in development across the world, especially in the area of technology, and one thing becomes obvious. Virtually every breakthrough recorded in order to make the latest advancement has been achieved by BUILDING on previous work done in various fields.In discussing this subject, I often like to start by asking this question: What would be the point of repeating other people’s mistakes when you still have plenty of your own unique ones to make - through which you can contribute usefully to the existing body of knowledge?Then I challenge the thoughts of my listeners/readers to think about the people with whom they interact daily. I ask them to think about how each of such persons, has a uniqu
The important thing to keep in mind regarding a general partnership is that each partner is personally liable, just as in a proprietorship, for debts and taxes to the extent that personal assets can be subject to attachment and liquidation if the partnership itself cannot satisfy creditors' claims.
Advantages
-Two (or more) hea
What you thought is enough to start a restaurant business could be the same thing which could cause your business downfall in less than a year. You may be an expert entrepreneur or you may have inherited a family business but have no background about restaurant and catering at all – no matter the qualifications you have, some things are better studied first hand than realized later. And later could be too late.First of all, do yourself a favor by getting to know what are restaurants and its nature. The important and primary things should never be ignored and forgotten. In this case, tell yourself first if you can handle this type of business because in case you didn’t know yet, restaurants are complex type of businesses. It doesn’t involve one thing alone and if you guessed it right, profit is the word.Restaurants should
The initial choice of a business form, even if it achieves optimum results in the start-up phase, may require adjustment or alteration as the business matures. It is important to periodically re-examine the appropriateness of the type selected. Below is a description and a comparison of the advantages and disadvantages of each form of organization.
Sole Proprietorship
For an individual who wants to keep the operation small and simple, this is the easiest, least costly, and least regulated type of business to enter into. A sole proprietorship can be formed by just finding a location and opening the door for business. There are the usual fees for registering your business name and for legal work in changing zoning restrictions and obtaining necessary licenses. Attorneys' fees will be less than for other forms of incorporation because less document preparation is required.
The sole proprietor has total responsibility and control, and can hire any number of employees who may even be paid a percentage of the profits as wages. The owner is personally liable for all claims, taxes and debts against the business, as well as for any injuries caused by or to employees during their employment. The sole proprietor is entitled to all profits made in the business, which must be included in the individual income tax return. If a person has assets, or is developing an asset base, this form of business exposes the individual to litigation.
Advantages
-Easiest to get started
-Greatest freedom of action
-Maximum authority
-Income tax advantages
-Social Security advantages
Disadvantages
-Unlimited liability
-Death or illness endanger business
-Growth limited to personal energies
General Partnership
A partnership can be formed by simply making an oral agreement between two or more persons, but such informality is not recommended. It is wise to have an attorney draw up an agreement among all partners, clearly stating the specific duties and rights of each of them, to help resolve any future disputes. Almost any type of management and profit-sharing arrangement can be agreed upon.
Each partner is an "agent" for the partnership and can individually hire employees, borrow money and operate the business. A partnership is not a separate legal entity, even though required to report its income on a separate, informational tax return (Form 1065), but profits made must be included in each partner's individual tax return.
The important thing to keep in mind regarding a general partnership is that each partner is personally liable, just as in a proprietorship, for debts and taxes to the extent that personal assets can be subject to attachment and liquidation if the partnership itself cannot satisfy creditors' claims.
Advantages
-Two (or more) head
When your merchant account provider reverses a customer's transaction as a result of his disputing the charge, then, unless you successfully challenge the reversal, you lose the sales proceeds, incur any shipping & handling costs and are levied a chargeback fee of $25 to $50.And, an excessive history of chargebacks may result in the disastrous consequence of losing your merchant account and your ability to accept credit cards.So, it's obviously important to take prudent steps to minimize the occurrences of chargebacks - especially if your transaction volume is high.The disputes are usually based on a customer's claim that he did not receive the product or service that he ordered from you; that what he did receive was somehow defective or not what he ordered; or that he did not in fact order anything at all from you
For an individual who wants to keep the operation small and simple, this is the easiest, least costly, and least regulated type of business to enter into. A sole proprietorship can be formed by just finding a location and opening the door for business. There are the usual fees for registering your business name and for legal work in changing zoning restrictions and obtaining necessary licenses. Attorneys' fees will be less than for other forms of incorporation because less document preparation is required.
The sole proprietor has total responsibility and control, and can hire any number of employees who may even be paid a percentage of the profits as wages. The owner is personally liable for all claims, taxes and debts against the business, as well as for any injuries caused by or to employees during their employment. The sole proprietor is entitled to all profits made in the business, which must be included in the individual income tax return. If a person has assets, or is developing an asset base, this form of business exposes the individual to litigation.
Advantages
-Easiest to get started
-Greatest freedom of action
-Maximum authority
-Income tax advantages
-Social Security advantages
Disadvantages
-Unlimited liability
-Death or illness endanger business
-Growth limited to personal energies
General Partnership
A partnership can be formed by simply making an oral agreement between two or more persons, but such informality is not recommended. It is wise to have an attorney draw up an agreement among all partners, clearly stating the specific duties and rights of each of them, to help resolve any future disputes. Almost any type of management and profit-sharing arrangement can be agreed upon.
Each partner is an "agent" for the partnership and can individually hire employees, borrow money and operate the business. A partnership is not a separate legal entity, even though required to report its income on a separate, informational tax return (Form 1065), but profits made must be included in each partner's individual tax return.
The important thing to keep in mind regarding a general partnership is that each partner is personally liable, just as in a proprietorship, for debts and taxes to the extent that personal assets can be subject to attachment and liquidation if the partnership itself cannot satisfy creditors' claims.
Advantages
-Two (or more) hea
From a business perspective, rejection is the best of teachers. Look over your documents. Do you see flaws in your r?sum? you failed to see earlier? If so, fix them. The great thing about the electronic age is that r?sum?s can be cranked out, and out, and out. Tailor the next r?sum? you send out to fit the position to a T. Did your cover letter fail to sell you? Did your follow-up letter do its job?Remember my little buddy, the soon-to-be college graduate? I wrote his r?sum?. After a couple of interviews without offers, he called me, whining and begging, for me to rewrite his r?sum?. I frankly told him that if he was getting interviews then the paperwork was just fine. It was his interviewing that failed him.So go over the interview in your head. Don't go over it until you can repeat the errors on automatic pilot. Go over
Advantages
-Easiest to get started
-Greatest freedom of action
-Maximum authority
-Income tax advantages
-Social Security advantages
Disadvantages
-Unlimited liability
-Death or illness endanger business
-Growth limited to personal energies
General Partnership
A partnership can be formed by simply making an oral agreement between two or more persons, but such informality is not recommended. It is wise to have an attorney draw up an agreement among all partners, clearly stating the specific duties and rights of each of them, to help resolve any future disputes. Almost any type of management and profit-sharing arrangement can be agreed upon.
Each partner is an "agent" for the partnership and can individually hire employees, borrow money and operate the business. A partnership is not a separate legal entity, even though required to report its income on a separate, informational tax return (Form 1065), but profits made must be included in each partner's individual tax return.
The important thing to keep in mind regarding a general partnership is that each partner is personally liable, just as in a proprietorship, for debts and taxes to the extent that personal assets can be subject to attachment and liquidation if the partnership itself cannot satisfy creditors' claims.
Advantages
-Two (or more) hea
Now that the Iraq study group headed by former Secretary of States James Baker III has delivered its blistering report on the Bush administration’s handling of the Iraqi War, we’ve all been waiting for the wondrous solutions that either the lame-duck administration or our new leaders in Congress will propose.Well, I’m tired of waiting!Everyone says we can’t get out. We can’t win. We can’t achieve victory. But what I’m really concerned about is that the Democrats are still hung over from their victory and are struggling to find a solution to the Iraqi problem. I don’t’ want to see a lot of bickering going on; I don’t want to see our new leaders become discouraged, particularly around this holiday season.So what I’d like to do is offer a number of options to resolve the Iraqi crisis. (Or at least some that will allow
Disadvantages
-Unlimited liability
-Death or illness endanger business
-Growth limited to personal energies
General Partnership
A partnership can be formed by simply making an oral agreement between two or more persons, but such informality is not recommended. It is wise to have an attorney draw up an agreement among all partners, clearly stating the specific duties and rights of each of them, to help resolve any future disputes. Almost any type of management and profit-sharing arrangement can be agreed upon.
Each partner is an "agent" for the partnership and can individually hire employees, borrow money and operate the business. A partnership is not a separate legal entity, even though required to report its income on a separate, informational tax return (Form 1065), but profits made must be included in each partner's individual tax return.
The important thing to keep in mind regarding a general partnership is that each partner is personally liable, just as in a proprietorship, for debts and taxes to the extent that personal assets can be subject to attachment and liquidation if the partnership itself cannot satisfy creditors' claims.
Advantages
-Two (or more) hea
Multi level marketing has proven itself to be a very wise way of managing your day to day sales strategies. It allows for owners of businesses to be able to delegate the average money making processes of a job to others so that they can enjoy the benefits of earning without all of the work. MLM residual income opportunities have popped up all over the place. In fact it seems that with every new product to hit the market, a brand new MLM residual income opportunity pops up with it. If you are the business owner, you are earning a lot of money over and over again for work that you put in only once. It is a lot like receiving royalty payments for a book that you wrote once.The internet has become a major force in creating your own MLM residual income opportunity. Now you can use your own website to recruit people to selling your pr
The important thing to keep in mind regarding a general partnership is that each partner is personally liable, just as in a proprietorship, for debts and taxes to the extent that personal assets can be subject to attachment and liquidation if the partnership itself cannot satisfy creditors' claims.
Advantages
-Two (or more) heads better than one
-Additional sources of venture capital
-Better credit rating than corporation
Disadvantages
-Hazy line of authority
-Difficult to get rid of bad partner(s)
-Death, withdrawal or bankruptcy of one partner endangers business
Corporation
Think of a corporation as legally separate from its shareholders. This is the most important feature distinguishing it from a partnership or proprietorship. It is definitely best to get an attorney to take care of the formalities of setting up a corporation, even in the case of a small family corporation where an attorney can help prevent hard feelings and squabbles. This type of business is usually the most costly to form, especially if organizational problems are complex.
People usually incorporate to limit personal liability for the debts and liabilities of the business. However, with many new businesses this limit of personal liability applies only to judgments brought against the company for negligence, defective products, or frivolous suits. In fact, the owner(s) of a new business will usually remain liable for the repayment of loans and other debts because most major creditors, especially lenders, will try to limit their risks by requiring owners to pledge their personal assets as security for a debt. In some cases, an officer or employee of a corporation may also be personally liable for failure to withhold taxes. A corporation is a separate legal entity and a more structured form of business. It can continue to function even without the existence of original ownership or other key individuals. It also has advantages in terms of enabling employees to participate in various types of insurance and profit sharing. A corporation has more flexibility in terms of different approaches to taxation.
Advantages
-Limited liability for stockholders
-Continuity
-Transfer of shares
-Easier to raise capital
-Possible to separate business functions into different corporations
Disadvantages
-More expensive to launch and maintain
-Gives owner a false sense of security
-Heavier taxes
-Power limited by Charter
-Less freedom of activity
-Legal formalities
Conclusion
Persuasion is the missing puzzle piece that will crack the code to dramatically increase your income, improve your relationships, and help you get what you want, when you want, and win friends for li
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