Contracts
For our business, Karma Kaffeine, we will need to implement several contracts. For instance, we will be required to form a lease contract when we decide to rent out property for our business. The leasehold interest we will engage in is Periodic Tenancy, which is the automatic renewal of the contract for another rental period unless formally and properly terminated (Holcomb, 2015). Our business has chosen to rent property because it will save us money if we are required to change locations due to unforeseen circumstances. In addition to forming a lease contract, we will need to form contracts with our suppliers and distributors to ensure our products will be delivered promptly. We will need our cups customized with our company’s logo on it, our coffee, and our pastries and other bakery items to be delivered to us by our suppliers. Along with needing these two contracts, Karma Kaffeine will hire and form a contract with a general contractor. Although hiring a general contractor seems like an excess expense, our business will save money in the long run if we hire one (Gentile, 2014). Because we are not plumbing or architectural …show more content…
LLP’s have many advantages that will work for our company’s benefit. For example, all partners have equal management rights and limited liability. Because LLP’s are a legal entity apart from their owners, partners are not personally liable for the business. LLP’s also have flow-through taxation and exist until they are cancelled or revoked. Our business will survive, even after the owners’ death, and this is a huge advantage, granted our business is successful. We have chosen to form our business as a Limited Liability Partnership primarily because of its equal right to management, limited liability, and the fact that it will exist until we cancel or revoke it. When choosing which business structure would best fit our company, we looked at six
For our business, Karma Kaffeine, we will need to implement several contracts. For instance, we will be required to form a lease contract when we decide to rent out property for our business. The leasehold interest we will engage in is Periodic Tenancy, which is the automatic renewal of the contract for another rental period unless formally and properly terminated (Holcomb, 2015). Our business has chosen to rent property because it will save us money if we are required to change locations due to unforeseen circumstances. In addition to forming a lease contract, we will need to form contracts with our suppliers and distributors to ensure our products will be delivered promptly. We will need our cups customized with our company’s logo on it, our coffee, and our pastries and other bakery items to be delivered to us by our suppliers. Along with needing these two contracts, Karma Kaffeine will hire and form a contract with a general contractor. Although hiring a general contractor seems like an excess expense, our business will save money in the long run if we hire one (Gentile, 2014). Because we are not plumbing or architectural …show more content…
LLP’s have many advantages that will work for our company’s benefit. For example, all partners have equal management rights and limited liability. Because LLP’s are a legal entity apart from their owners, partners are not personally liable for the business. LLP’s also have flow-through taxation and exist until they are cancelled or revoked. Our business will survive, even after the owners’ death, and this is a huge advantage, granted our business is successful. We have chosen to form our business as a Limited Liability Partnership primarily because of its equal right to management, limited liability, and the fact that it will exist until we cancel or revoke it. When choosing which business structure would best fit our company, we looked at six