Essay about Business Structure Advice

678 Words Sep 8th, 2015 3 Pages
Starting a business exciting and also it is incredibly challenging. There are things that you need to think and do before starting your business. Having a business plan can help your business to be successful. On your business plan you need to put your executive summary of your business. On the executive summary you need to include the mission statement, company information, growth highlights, the product or service that you will offer, financial information and summarize future plan. Since you are just starting a business you can focus on your background and experience and it will also be helpful to put the reason why you decided to open up a business. Include your market analysis, target market and how and why your particular solution …show more content…
There are three types of partnership; general partnerships, limited partnership and joint ventures. In general partnership the owners assume that the profits, liabilities and management duties will be divided equally among the partners. If you do not want to do that then you need to document it on the partnership agreement. Limited partnership is more complex that the general partnership. Limited partnership allows the partners to have a limited liability and also a limited input on the management decision. The limits will depend on the extent of the partner’s investment. Joint ventures is somewhat the same as general partnership but just for only a limited period of time or sometimes just for a single project. Partners in a joint ventures can also be on going partnership if they decided to continue the venture but they need to file it. When filing for tax, the partnership need to file for their annual information return to report the deduction, income, losses and gains from the companies’ operation. The business itself does not pay income tax but instead the business passes through any losses or profits to its partner. The partner includes their share of the partnership’s loss or income on their personal tax return. When filling information for partnership, the partnership need to furnish copies of the business Schedule K-1 form 1065 to all partners. The

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