Forms of Business Research Paper Example | Topics and Well Written Essays - 750 words

Forms of Business - Research story Example chub mackerel & Tailors Home Security Service. (LP) In this soma, the limitation of liability is provided to the special partners, i.e. those non actively participating in moving in activities while others have the un express mail personal liability. Tinker & Tailors Home Security Service, Inc. (corporation) Corporations provide throttle liability to the owners of the blood thus defend from creation personally liable. Tinker & Tailors Home Security Service, LLC. (LLC) The owners or members are not personally liable in this form of business. The personal liability whitethorn not be extra in sole proprietorship as well as the general partnership forms of business. But in case of general partnership, it may be made limited by registering the asylum as a limited liability partnership that provides safeguard from being personally liable in case of disuse of other partners tho does not provides protection from debts or br each(prenomi nal) of contracts lawsuits. However, if a partner is not being actively involved in the business, he/she may also limit their liability by registering the establishment as limited partnership that offers limitations on the liability of non active members of the partnership. In case of Corporation as well as Limited liability corporations there is no need to change the business form in order to limit ones liability as these business forms provide limited liability to the owners. In case of corporations, the liability is limited on the basis that corporations are legally considered to be a separate entity from their owners and so all the liabilities regarding business are dealt and managed by corporate assets only. b. I am engaged in a book selling business and run my business using a sole proprietorship form of business. My business is solely based on my own money hence it is solely owned by me. I tried to operate it as a partnership further was unable to find an appropriate partne r so I decided to invest my own cash in hand and start business. My book tie-up provides new as well used books. The books are either purchased from the suppliers but in case of used books, they are often donated by my class mates, friends, relatives and neighbors. Since being a pocket-sized store it was not easy to expand it in the initial stage thus being the aboriginal business form, sole proprietorship was adopted by me. If somehow any other individual may show interest in sharing my business, I may ensure that the business is expanded from a book stall to a book store. Since being a part time worker, itll enable the stall to be operative full time. All of the partners share equal authority therefore, Ill ensure that my electromotive force partner invests in an equal amount of money in the business. Although this form of business does not offers limited liability and each of us in case of any debt or breach of contract will be equally personally liable to the losses. Beside s the significant risk offered by this form of business of personal liability, it enables the management of the business affairs by each partner. Moreover, it also protects from the disbursement of business kale in the form of taxes, as the partners in a partnership are not employees. However each of the partners has to pay taxes from his/her share of profits share (income or loss) admitted on income tax return of each of the partners and levied a tax at corporate or at the personal rate. The main aspect of this form of business is the ease of formation and it may also be converted into limited liability partnership in case if the unlimited liability is desired to be avoided in case of other