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A corporation is more advantageous than a partnership because a corporation can be located in a US State such as Delaware that has no corporate income taxes. As a corporation shares may be sold to the public to raise funds. Corporations avoid the problems associated with partnerships in that the latter is not reliant upon a set of individuals to function and avoids the problems associated with the death of a key partner. Key partner insurance can be obtained but at a cost that reduces the profitability of the organization. Corporations also can absorb lawsuits without endangering the personal liability of the share holders. A partnership is subject to lawsuits that directly hold individual partners monetary damages. Also the name of a corporation is more easily sold along with its assets should the shareholders wish to sell the business.
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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.
Why is it easier for a partnership to borrow money and to hold good employees than its is for a sole proprietorship to do so?
A partnership has more stability and access to more assets.
Why are tax credits more advantageous than tax deductions?
tax cridits are fery importat for the country but tax didiution is not more than tax cridits
Business Partnership Agreement?
form_title= Business Partnership Agreement form_header= When forming a partnership, it is essential to have a certified agreement. How many businesses are invoked?*= {1, 2, 3, 4, 5, More than 5} Have you ever made a partnership before?*= () Yes () No What percentage of responsibility is each part of the partnership?*=_ [50]
What are the main reasons why corporation is separated from its owners?
The separation provides protection to the shareholders in the event corporation's liquidation. The shareholders are not liable more than the worth of their investments in the corporation.
Why is a corporation more advantageous than a partnership?
A corporation is more advantageous than a partnership because a corporation can be located in a US State such as Delaware that has no corporate income taxes. As a corporation shares may be sold to the public to raise funds. Corporations avoid the problems associated with partnerships in that the latter is not reliant upon a set of individuals to function and avoids the problems associated with the death of a key partner. Key partner insurance can be obtained but at a cost that reduces the profitability of the organization. Corporations also can absorb lawsuits without endangering the personal liability of the share holders. A partnership is subject to lawsuits that directly hold individual partners monetary damages. Also the name of a corporation is more easily sold along with its assets should the shareholders wish to sell the business.
Can a corporation be a partner in another corporation?
A partnership is a different legal entity than a corporation. Therefore, literally speaking a corporation cannot be a partner in another corporation because corporations don't have partners. A corporation can be a security holder in another corporation. For example, a corporation that owns all of another corporation would be the "parent company," and the owned corporation would be a "wholly-owned subsidiary."Please note, at least here in the US, two corporations can form a partnership and it is not limited to actual people. There are some situations when this is advantageous over just forming a joint venture.
Besides incorporation how else can you start a business?
You may start doing business as a sole proprietor. You and a partner may do business as a partnership. You can form a Limited Liability Company (LLC). An LLC is a hybrid between a partnership and a corporation. It generally has less formal requirements than a corporation and is usually taxed as a pass through entity like a partnership. Go to your state's Secretary of State or Small Business Association for more information. Good luck.
Is having three of a kind more advantageous than having a straight in a game of poker?
In a game of poker, having a straight is generally more advantageous than having three of a kind.
Proprietorship versus partnership?
A person owning a business is a proprietor and more than one are in a partnership.
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.
Is globe more advantageous than map?
Globes will give a more accurate representation.
What is a definition of small business?
Small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business.
Why is it easier for partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?
A partnership has more stability and access to more assets.
Why is it easier for a partnership to borrow money and to hold good employees than its is for a sole proprietorship to do so?
A partnership has more stability and access to more assets.
Why is it easier for a partnership to borrow money and hold good employees than it is for a sole proprietorship to do so?
A partnership has more stability and access to more assets.
What is the Uniform Partnership Act?
The Uniform Partnership Act, recognized by more than forty states, states that "a partnership is an association of two or more persons to carry on as coowners a business for profit" (UPA 6[11]).
