Essay on Business Entities : Recommendations For A Start Up Company

748 Words Sep 18th, 2016 3 Pages
DATE: September 17, 2016
TO: Gloria Smithson
FROM: Izabela Kaczor – Kaczor Business Planning and Accounting
RE: Business entities: recommendations for a start-up company

Thank you for the opportunity to work with you. Selecting the appropriate business entity requires a careful balancing of tax, legal and other considerations. As requested, I have analyzed the pros and cons of few different types of business entities and evaluated which business type would be the most appropriate for you and your husband.
There are many legal forms of business, from the simplest – Sole Proprietorship, Partnerships-General and Limited, Limited Liability Company to Corporation. The best possible options that would serve your needs are as follow: General Partnership, Corporation or Limited Liability Company (LLC). Below you will find the general information regarding each entity, as well as pros and cons for each of them.

BUSINESS ENTITIES ANALYZE

General Partnership

General Partnership it 's an association of two or more persons to carry on a business for profit. There are no formal procedures to form a partnership -- no forms to fill out, no agreements to sign and no documents to file -- though it 's certainly desirable from a business and legal perspective. In a general partnership, partners share, jointly and severally, in the liability for business obligations (Phillips Erb, K. (2015)).

Pros:
Easy to create
Inexpensive
Shared financial commitment
Cons:
Joint and individual…

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