Paper

-Write about SP

-List 7 characteristics that are given in the task

· Liability: What are the limits on liability and protection of not only business assets, but personal assets and future earning power of the owner beyond this particular business?

· Income taxes: What are the requirements for each form of business and/or owner with regard to paying federal, state, and local income taxes?

· Continuity of the organization: Under what conditions would each business form be forced to dissolve?

· Control: Who has ultimate control over important decisions? How much control does the owner have to grant to others.

· Profit retention: How are the profits distributed between the company and the owners/shareholders? How does this affect return on investment?

· Expansion: What are the implications for moving or expanding the business into a different state? Will a separate legal entity have to be created or new documents filed in the new state? Are there advantages or disadvantages regarding how state taxes will be assessed?

· Compliance: What regulatory requirement must be met to form the organization? What additional requirements or extra workload are placed upon the organization to comply with all reporting, meeting, and other regulatory requirements?

-Talk about the characteristics that it applies to SP

-Read scenario – Limited Partnership

-Recommend the type of corporate structure that this person should use to expand his business, which corporate structure to help him reach his goals.

-Set out the list of goals

-Define 4-5 of his goals

-Choose corporate structure and justify that structure

-Wood making, got trucks, install cabinets, has saws/hammers/tools that could be dangerous.

-Main concern is liability, keep control of business, wants some kind of corporate structure, expand business (needs capital), if he dies wants business to continue, concerned about tax.

B1. Recommendations

B2. Justifications

C. Sources