0
What are the benefits of incorporating a business rather than partnership?
Wiki User
∙ 9y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What are the benefits of a franchise business rather than a stand alone business?
When you go with a franchise, you're going to be getting a lot of customers and employees beating down your door (in a good way) instantly! Many people are hesitant of trying something new, but the familiar brand with get business going strong.
What are the benefits of leasing a building rather than buying for a new small business?
If you purchase a building, all the maintenance needs will be your sole responsibility. If you lease, the landlord assumes the responsibility of maintaining the property.
Is it rude to say its none of your business?
Yes, say rather"I'd rather not say", or something like that.
Is promissory note a business letter?
A promissory note would be more accurately described as a legal document, rather than a business letter.
What does the phrase business to business mean?
It means a transaction of some form between a company and a company rather than a company and a private customer.
Can dry cleaner owner get unemployment benefits if shut down for code violations?
No, in the US a business owner or self-employed person does not qualify for unemployment benefits. Regardless of the reason the business was shut down, the owner is not considered 'unemployed', but rather a businessman whose latest business went under.
Why do you think the two college students decided to incorporate their business rather than operate it as a partnership?
They probably consulted with an attorney to find out what was best for them. For many businesses incorporation provides the best protection and tax breaks.
How do general partnerships and limited partnerships and limited liability partnerships differ?
PARTNERSHIP; Partnership arise whenever two or more persons co-own a business, and share in the profits and losses. Each person contribute something to the business something to the business such a ideas, money or property. Rights and personal liabilities will vary according to the type of partnership taken. there are three types of partnerships 1) General partnership, 2) Limited partnership, 3) Limited Liability Partnership GENERAL PARTNERSHIP; General partnership is the relationship between two or more persons carrying on the business in common with a view to profit. General partnership share equal rights and responsibilities in connection with the management of the business, and individual partner can band the entire group to the legal obligation. each individual partner assume full responsibility for the debts of the business. LIMITED PARTNERSHIP; A partnership may be formed in which the liability of at least one partner (general partner) is unlimited, and the other partners liability for the debts of the company is limited to their capital contribution. the rules are as follows. 1) Limited partner may not withdraw their capital. 2) Limited partner may not take part in the management of the business. 3) Limited partner can not bind the business into agreement with the third party. 4) The partnership must be registered with the company house. LIMITED LIABILITY PARTNERSHIP; This kind of partnership is particularly used for professional partnership. LLP is similar to Limited companies, but the liability of the partners are limited to their capital contribution. LLP have the same requirements for governance and accountability as limited companies has, these are setup by the firm of professionals such as accountants and lawyers. The main advantage of LLP over traditional partnership is that LLP is liable for its own debts rather then partner debts.
Who was Shakespeare's boss?
For the most productive part of his life, Shakespeare was his own boss, or rather was one of his own bosses. The theatre company and the Globe theatre were owned by a partnership or "sharers", all of whom had a say in how the business was run.
What is the difference between an alliance and a partnership?
The term alliance is more usually applied to political arrangements; two or more nations form alliances by way of treaties, such as NATO, the North Atlantic Treaty Organization. The term partnership is more often applied to business arrangements. If two people run and own a business together, they are business partners and can be said to have a partnership. Marriage is more usually considered to be a partnership than an alliance, and when it is described as an alliance, it is usually because it is seen more as the marriage of two extended families, rather than just the marriage of two people (so a large family group is in some sense like a nation, and can form alliances). But bear in mind that it is perfectly possible to describe two nations as partners, or two people as allies. The terms are largely interchangeable.
What are the requirements to incorporate a private company?
It depends on the state, but typically all that is required is that you choose a unique name, register with your Secretary of State, give them the required information, and pay the necessary filing fee. Unless it is a large corporation with a complicated ownership arrangment, or you are planning to do business in a regulated market such as banking or insurance, incorporating your business can usually be done without an attorney. The trick however, is not in the actual incorporation, but rather in running the business in the right way so as to protect your personal assets, which is really the whole point of incorporating in the first place. That is a little more complicated, but with some research it can be done without a lawyer.
What are the benefits of a franchise business rather than a stand alone business?
When you go with a franchise, you're going to be getting a lot of customers and employees beating down your door (in a good way) instantly! Many people are hesitant of trying something new, but the familiar brand with get business going strong.
For a small business, what are the benefits of opening a business checking account rather than using a personal checking account?
There are several benefits from opening and maintaining a business checking account rather than using your personal checking account. When you use a business checking account you are segregating your business funds from your personal funds, thus creating better organization for your business. Also, having the business checking account will help at tax time because all your business transactions will be within the business checking account and there will be no need to sort through your personal transactions. Finally, the business checking account will allow you to use a taxpayer identification number (TIN) so the funds can legally be owned by your business, instead of using your social security number on the checking account. For a small business, opening a business checking account allows you to get more interests. In addition, transactions are processed faster compared to a personal account.
What are the benefits of leasing a building rather than buying for a new small business?
If you purchase a building, all the maintenance needs will be your sole responsibility. If you lease, the landlord assumes the responsibility of maintaining the property.
Why are some businesses legally organized as partnerships rather than as corporations?
The choice of the form in which business owners want to do business (i.e., as a partnership or a corporation) depends on what the owners consider to be most advantageous for them. The advantages of having a partnership is that all owners have an equal say in all partnership decisions, and they share profits equally (unless they have a partnership agreement that states otherwise). If a business's owners want to be the ones actively managing the business, they'll want to manage the business as a partnership. In a corporation, the owners are the shareholders, and shareholders can generally sell their ownership interest freely. But even though they are the owners of a corporation, unless the corporation is very small (and special rules apply to small corporations) the shareholders do not manage the corporation or make business decisions for it. Instead, the shareholders elect a board of directors, and the directors choose the executives who will manage the corporation's business. But it is possible for a small corporation composed of a few people to become an LLC instead of a partnership. However, they must comply with the relevant law to do that, and that includes filing with the state. A second advantage of operating as a parnership is that, if people do business as a partnership, they don't have to file separate income tax returns for the partnership. Instead, each partner simply reports his share of partnership income on his or her own personal income tax return. A third advantage of operating as a partnership is that no filing with the state is required. To set up a corporation, legal documents have to be prepared and filed with the state of incorporation, and there are fees involved. Furthermore, a corporation must pay income taxes and file its own income tax return annually. But there are disadvantages to operating as a general partnership. If people are doing business as a partnership, they can each be held personally liable for harm caused by any of the partners if the partnership is sued. So if partner A commits a tort in the course of business and is sued by an outsider, the outsider can sue not only partner A, but all of the other partners separately, as well as the partnership. And if the outsider wins damages that are more than the partnership assets are worth, the partners have to make up the difference out of their own money. And what is worse, the partners are jointly and severally liable. So if your partner commits a tort and a third party sues you and your partner as well as the parnership, the plaintiff can choose to collect the entire amount of the judgment from you, and you would have to try to get the other partner to contribute his share. Clearly, doing business as a general partnership requires a great deal of mutual trust among the members. The chief advantages to doing business as a corporation are: 1) Perpetual existence: When a partner leaves or dies, a partnership is technically dissolved by that event. Partnership agreements can provide otherwise, though. But a corporation can, in theory, exist forever, because in the eyes of the state, a corporation is a separate entity, apart from its owners. 2) Free transferability of ownership interest: Shareholders of a corporation can usually sell their shares at will. 3)Limited liability: this is the major advantage of doing business as a corporation. If a third party wins a judgment for damages against a corporation, he can collect only out of the assets of the corporation, and not out of the personal assets of the owners. But a corporation must adhere to the laws governing corporations to get limited liability treatment; if the corporation was merely set up as a "dummy corporation" without sufficient funds or assets, a court may treat it like a partnership, so the the personal assets of individuals could be attached to satisfy the judgment.
What is the difference between entrepreneurship and small business?
Small business just means a group below a certain size, with the benefits and drawbacks of operating on the smaller scale. Entrepreneurship refers to the spirit of enterprise, usually in people rather than groups, and it can apply on the big or small scale.
The difference in marketing a company's product to organisations rather than consumers?
When a company markets to another business, they must include more technical and expert details. When they market to consumers, providing the features and benefits are sufficient.
