LIT1 Task 1 Essay

| It is impossible to add additional owners and to pass on business, business dies with owner. A single owner

LOCATION- Location is irrelevant for the C-Corp since corporate tax is the same for all states.

Longevity/Continuity: Because the owner of a Sole Proprietorship and the business, are legally one and the same, when the owner of the business

This is typically determined by how much money each limited partner is investing in the company.

Location- Similar to the General Partnership, the Limited Partnership may be moved to another state easily. A new DBA filing must be made in the

Many believe that liability is a biggest issue in a general partnership than in a sole proprietorship. The owners of the company are still fully liable for any debts the company may accrue as well as the liability for any lawsuits that may be brought against the company. However, the bigger issue in a partnership is that now each partner can be liable for the other partner’s actions. If one partner is sued for malpractice, the other partner may suffer because of it.

The General Partner has exclusive management and control over all aspects of the Fund 's business. The Limited Partners have no right to participate in the Fund 's management except for certain limited voting rights as specifically set forth in the Fund 's LP Agreement, which include the election of a successor General Partner and the dissolution of the Fund. Matters requiring limited partner approval generally require the vote or consent of a majority-in-interest of the Limited Partners.

In a C- Corporation the profits are divided among the stockholders. The amount of profits depend on the percentage stocked owned. For example if you owned 15 percent of the corporation’s stock, you may receive 15 percent of the profits. The more stock you own the greater the return.

Sole Proprietorship: This is a type of business is where the business and the owner are one in

When it comes to partnerships Alex, Bill, Carl, and Devon will have two options- a general partnership or a limited partnership. Partnerships are beginning to be a business form of the past. Once upon a time, partnerships were “the default form of business and provided the benefit of pass-through taxation, but lacked the important feature of limited liability” (Chrisman, 2010, p. 465). In a general partnership, each partner associated with the entity will be held liable for their own business decisions as well as

Is a limited partnership treated as a separate entity for all purposes? If not, give an example of an instance in which a limited partnership is treated as an aggregate of its partners.

Longevity: Similar to a sole proprietorship, in case of death or incapacity of a partner the

Income Taxes: A sole proprietor and their business are taxed as a single unit. All profits, no matter how big or little, are filed on the standard Form 1040 along with a Schedule C. All profits are considered personal income.

Longevity: Since limited partners are investors in the partnership agreement between them and the general partners there is usually a buy out provision contained in the agreement but not always. Even if a limited partner decides to leave the business the business still continues. The general partners longevity is as long as they have a desire to continue to participate in the business. The written agreement should of course also contain instructions on what is to be done if a general partner dies,is incapacitated or just simply wants to be bought out of the business.

General partnership can be as simple as a written agreement between two people. General partnership require a small amount of red