For this work, I will be describing the different business structures offered by the website of UOP. After watching the videos offered on this website, one has noticed that there are different types of business structures. Although each of them differs from each other giving options to people who want to become business entrepreneurs. Those business structures are sole proprietors, general partnerships (GP), limited partnerships (LP), limited liability companies (LLC), s corporations and c corporations. However, we note that each of them has a purpose according to their needs and the needs of your business.
To begin with we have, that a sole proprietorship is easy to start and has no cost to start, like other business structures and besides, there are no required annual or operational documents. Otherwise the owner did not have any liability coverage; means that it is responsible for everything, and they do it pay federal taxes and state taxes on their income. To continue, we have the general partnership formation requirements that are simple and inexpensive.
All partners have joint and several liabilities. Otherwise, there are no prescribed annual reports and pay no taxes at federal or state level. One of the problems with being a partnership is the responsibilities, while tax cuts are the main cause of why you are part of one. However, the requirements limited partnership formation such complicated or just a time and costs are reasonable. No annual reporting get that are taxed either at the state or federal level found in LP. The assets are protected and are not compelled in any debt or obligation.
But the legal procedures and document work is much broader. On the other hand we have the limited liability companies’ requirements formations are complex and are much more costly. However, the good thing is the members have limited liability, but there is more paper work involved as well as the tax plans coming together. 3 BUSINESS STRUCTURE According to Stephanie Morrow “Legal Zoom” (2009), “Probably the biggest disadvantage for the formation of an LLP is that it is only available for certain occupations such as lawyers and doctors.
” Otherwise, we have the S corporations and C corporations. They both are different in the way that S is more suitable for small businesses and one it becomes taxed while C corporations are more suitable for medium business and get tax duplicate. Both of them have limited responsibilities and both require a maximum document working such as minutes and annual reports. In conclusion such concurrence if you are going on a business view as a sole proprietorship or with other partners, if you want to have people invest in your business and even franchise, everything falls around their needs and the needs of your business, and this is how your business structure just decide or change over time.
4 BUSINESS STRUCTURE References Legal zoom. (2009). Partnerships: Pros and Cons . Retrieved from http://www. legalzoom. com/business-law/corporate-law/partnerships-pros-and-cons Planning your business: Research, goals, and business plans. (2011). Retrieved February 21, 2015, from http://digital. films. com/PortalPlaylists. aspx? aid=7967&xtid=42248.