Hello Mr. Reid, since we last meet I have since been able to come up with three potential business options that will be able to suite you the best at Reed & Associates. Based on your given situation of being married with children I feel as though starting an LLC, C Corp, or S-Corp are all very viable options that can take your business to the next level on just about every aspect. Since you are currently running as a General Partnership though I will also take you through some options that are available for you if you decide to stay in operation as such so you will know your full arrangement of choices available for you.
As I see it Reid & Associates staying as it currently is as a general partnership has some pros and cons as it is right …show more content…
Limited liability companies are actually a form of legal entity that can be viewed as both a mixture of a general partnership and a corporation. LLC’s combine those two businesses kind of like a melting pot to take the best of what each has to offer. I believe that you will find an LLC’s most attractive view point is that if the situation that I previously stated happens, where a partner makes a bonehead mistake that ends up hurting the business and sending lawyers after you there is no way that your personal or family possessions can be affected. When it comes to filing your taxes an LLC gives you multiple options for choosing which method you prefer. The first choice is that you can be taxed as an S Corporation, this means that you will have the business will be taxed as a pass through entity so you will not have to worry about your income taxes. This form of pass through entity instead will taxed to you based on Reid & Associates income, so you will be responsible for the taxes in that sense based on your personal 1/3rd share of the business. If you do not like the option of being considered a pass through entity though under an LLC you will still have the option to file as a C-Corporation and be subject to double taxation. Double taxation is where you are taxed twice on income under the C-Corp form due to the fact that C Corporations …show more content…
Reid. This is an option that you are currently lacking during this moment and is a major component as to why I believe that staying as you are and running your business, as a General Partnership is just not a good choice to make. This “separation of liability” benefits all members of the business in case the company was to ever go bankrupt or lose a substantial amount of money. Not being liable is something that you should strongly consider yourself, even if you accidently or unknowingly are the one who makes a misinformed judgment call you will have nothing (to substantial) to worry about. Working in the business’s best interest is a major exception that comes with this lack of susceptibility though and is something that you should always be conscious towards when making any potential business effecting decisions. If not operating under normal business conditions and in your best interest of the business in both the short and long term manner your freedom of prosecution and lack of susceptibility can easily be waived. As long as you are giving the business you best though, this clause should never come into effect for
As I see it Reid & Associates staying as it currently is as a general partnership has some pros and cons as it is right …show more content…
Limited liability companies are actually a form of legal entity that can be viewed as both a mixture of a general partnership and a corporation. LLC’s combine those two businesses kind of like a melting pot to take the best of what each has to offer. I believe that you will find an LLC’s most attractive view point is that if the situation that I previously stated happens, where a partner makes a bonehead mistake that ends up hurting the business and sending lawyers after you there is no way that your personal or family possessions can be affected. When it comes to filing your taxes an LLC gives you multiple options for choosing which method you prefer. The first choice is that you can be taxed as an S Corporation, this means that you will have the business will be taxed as a pass through entity so you will not have to worry about your income taxes. This form of pass through entity instead will taxed to you based on Reid & Associates income, so you will be responsible for the taxes in that sense based on your personal 1/3rd share of the business. If you do not like the option of being considered a pass through entity though under an LLC you will still have the option to file as a C-Corporation and be subject to double taxation. Double taxation is where you are taxed twice on income under the C-Corp form due to the fact that C Corporations …show more content…
Reid. This is an option that you are currently lacking during this moment and is a major component as to why I believe that staying as you are and running your business, as a General Partnership is just not a good choice to make. This “separation of liability” benefits all members of the business in case the company was to ever go bankrupt or lose a substantial amount of money. Not being liable is something that you should strongly consider yourself, even if you accidently or unknowingly are the one who makes a misinformed judgment call you will have nothing (to substantial) to worry about. Working in the business’s best interest is a major exception that comes with this lack of susceptibility though and is something that you should always be conscious towards when making any potential business effecting decisions. If not operating under normal business conditions and in your best interest of the business in both the short and long term manner your freedom of prosecution and lack of susceptibility can easily be waived. As long as you are giving the business you best though, this clause should never come into effect for