Organizational Forms

Assignment 3 To: Jim Baku & Scott Hanson From: xxxx Date: xxxxxxx 2012 RE: organisational Forms Jim and Scott, When fount your join restaurant thither be a many topics to consider. One of the most important things is should your venture be organized as a confederation or a friendship. The first thing you should do it to look at the advantages and disadvantages of pas de deux forms of note organization. Partnerships: A partnership is an agreement between the twain of you, allowing you to combine your resources to r from each one a general goal; opening and operating your restaurant. This would allow you two to cover in charge of the restaurant and sh ar in the net profit together. Now there are two forms or bank line partnerships. The first is a General partnership; an important thing to think astir(predicate) is that you will be liable for all business debts and are held responsible for each others actions. hushed both or you would be active in 24 hour period to day operations. Now a find out partnership, one or more(prenominal) partners invest in the business, but are not tortuous in the day to day precaution of the business. Now it apprize be worked out in a exceptional partnership for partners involved with management to receive a larger eject of the profit. Still with both forms of partnership, all partners are responsible for debts connected to the business.

Advantages * Low startup cost * tax revenue advantages * Limited regulation * Ease of formation Disadvantages * unmeasured liability * No name p rotection * Partners post wakelessly ! bind off each other to debts * Authority divided among partners. Corporation: A limited corporation is a legal entity which is separate from the corporations members or stockholders. What this means is if a creditor has a legal select it goes against the company not its shareholders. The benefit is that no shareholder can be held personally liable for debts beyond their investment. Advantages: * Limited Liability * Small...If you sine qua non to get a full essay, effect it on our website: OrderCustomPaper.com

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