Tim's Coffee Shoppe: Case Study

As a hybrid of partnerships and corporations, LLC’s provide limited liability for debts and flexibility to be taxed as a partnership or corporation (Staring and Naming a Business Presentation, 2012, Slide 5). Some specific advantages include being empowered authorities in the management of the business, diversity of members, limited liability, pass-through taxation, and less paperwork (appreciated by many). A drawback of this business structure is the need for a tailored operating agreement that specifies the specific needs of the

There are three types of business entities: sole proprietorship, partnerships, and corporations. Sole proprietorships are businesses owned by an individual person. They are easy to form, but are not taxed. Instead the individual business owner is taxed on any monies acquired on behalf of the business (Kubasek, 2012. Partnerships are businesses that are owned by more than one individual owners. The big thing about partnerships is that each partner is personally responsible for the acts of the other partners in the business . (Kubasek, 2012 Corporations are businesses owned by multiple people to include shareholders (Kubasek, 2012). They can sue and be sued and are subject to a host of rules and regulations set forth by the government.

When looking at liability, creating an LLC will limit the owner’s exposure to just his invested amount. This will legally shield his home, bank accounts, family’s property and other personal assets from seizure or liquidation in the event the company is held responsible for any of the situations mentioned, such as a cabinet falling or subcontractor failing to perform. It would also protect him in the event the expansion of his company fails, and a worst case scenario of the company going under.

A limited liability company consists of a single owner, or sometimes more than one owner, and are not taxed as separate business entities. All profits and losses pass through the business to those who own the company. Owners must report profits and losses on their personal tax return filing as a corporation, partnership, or sole proprietorship. If the LLC is ran by a single owner, they file a 1040 Schedule C form as a sole proprietor. Partners file a 1065 form consisting of a partnership, and a form 1120 is filed if the LLC is filing as a corporation. The LLC must be registered such as the State Corporation Commission, Department of Commerce and Consumer Affairs, Department of Consumer and Regulatory Affairs, or the Division of Corporations and Commercial Code. The great thing about an LLC is that the owner has freedom in management. The owner is able to run the organization as they see fit not answering to anyone,

The last of the four types includes the limited liability company, also known as a LLC. An LLC is an unincorporated form of business that carries characteristics of all of the other three forms of business. An LLC can choose to be taxed as a partnership, the owners can manage the business, and the owners have limited liability for debts and obligations of the partnership. LLC’s are

By forming an LLC John can take advantage of deducting certain business expenses. Purchases relating to business can be written-off. By deducting these expenses, John will be able to reduce his taxable income.

When choosing a business structure, it is important to understand the kind of liability that you might face. For example, in the case of Jeb and Josh their business venture is very risky, they should choose a business form that minimizes any potential personal liability. I think that a limited liability company (LLC) allows them the maximum protection for their personal assets without the formalities of corporate bylaws, directors and shareholders.

A Limited Liability Company (LLC), as the name states, has the ability in keeping your liability limited as a professional owner. This is fundamental in protecting your personal assets by separating them from your business assets. In choosing to run a LLC company, we have agreed that a manager-managed business would be conducive to our field of industry. Although one person will have the authority in overseeing the daily tasks of running the business, all non-managing members will still have an input in all decisions in regards to the enterprise. Contract negotiations and employment are just a few of the joint duties of all members. Running an LLC has many advantages like flexibility, limited liability in business related debts, pass-through taxes, and reliability standing. However, with perks there are always some downfalls, such disadvantages consists of being subjected to self-employment tax or if a member departs the LLC ceases to exist, although an Operating Agreement can reverse this challenge. As you can see, running an LLC has more pros, out weighing the cons of such companies.

The first and most notable benefit of an LLC over a Sole Proprietorship are potentially the tax benefits. Even though you are the sole owner of Kyle Grocery Stores, you have many managers and investors that are accumulating a steady amount of wages as a result of the companies increasing revenues and reducing of costs. However, all of the company's revenues are still yours and still go on your tax return. However, as a member of an LLC, each one your managers and you can report on your own individual tax returns provided the LLC agreement be set up the right way.

Every business that is created requires specific roles, with specific people, that have specific strengths and passions. In the case of Shania’s business, she has several friends and family that have voiced a willingness and interest in playing a part of seeing that business come to fruition. First, there is Shania’s husband, Marvin, who has said that he is willing to contribute financially to the business, however he has no intention of operating or managing the business. In the State of Colorado, community property does not apply, however there does exists the concept of marital property (Martin, 2010). I would advise Shania that any property transferred between her as an individual and the LLC might be considered marital

Dessert first is a family owned business with four partners. Each partner has invested $25,000 into the company and the rest has come from investments and loans. We each own a quarter (25% each) of the company. The presidents of the company are John Waldeck & Christine Waldeck and the vice presidents of the company are Tracy Waldeck and Daniel Waldeck. We all have extensive experience in marketing, finance, sales and management. We have mutually decided that our business structure should be a limited liability company (LLC) so that all of the owners have limited liability and our personal assets are protected.

The McGee Cake Company, currently operating as a sole proprietorship, may benefit from forming a limited liability company (LLC). An LLC is a comparatively new type of business entity. With an LLC there are reduced legal formalities in comparison to setting up a corporation. In addition, unlike a corporation, the McGees could set up an LLC yet remain the sole owners of the company. Another advantage as the owners of an LLC, the McGees are taxable only for personal income and not for the income of your LLC. Therefore, they would not pay double income tax. An LLC also has a long

Firstly, even though there are different types of partnership such as general, limited and limited liability partnership. This three different type has its advantages and disadvantages however we will be mainly focused on general partnership. One advantage of the general partnership is raising capital due to the nature of the business the partners will raise capital to start-up the business. Therefore more partners mean more capital can be put to the business, this allows the business to have more potential for growth and profitability. Another advantage is that a partnership is less complicated to form and run than a company they don’t have legal filing requirements, this means they don’t have to file accounts and documents with Companies House.

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

Next, we needed to get an employer identification number from RJSC. Other licenses and insurance we had to obtain depending on our state, county and city regulations. At the very least, we had to have an occupational license and insurance for your business.