Partis’ Post

In most market economies, there are three general types of organization: 1. Businesses 2. Non-Profits 3. Governments Organizational Forms of Businesses: 1) Sole Trader or Sole Proprietorship *the owner: a) provides the capital needed to start and operate the business. b) retains full control over management. c) participating fully in the firm’s financial returns and risks. d) retains all return (profits), which is taxed as personal income, and is personally responsible for losses and obligations of the business, such as debts. *requiring no formal legal registration, and is dissolved when the owner ceases business activity or dies. *An example is a family-owned business 2) Partnership *Partnerships allow multiple owners to pool their resources and share business risk and return. *Partnerships are often formed and governed by a written partnership agreement. *partnerships can be formed verbally or incidentally through actions. *There are three common types of partnerships: a) general partnerships (GPs): *GPs are like sole proprietorships with the important distinction that they allow for additional resources to be brought into the business by the additional owners, along with the sharing of business risk and return. *Examples of general partnerships include service businesses, such as builders or contractors, and joint ventures of multiple businesses. b) limited partnerships (LPs): *There must be at least one general partner (GP) with unlimited liability, Remaining partners have limited liability and may not have any management responsibilities. *GPs typically receiving a larger portion in exchange for their greater risk and personal liability. *limited partners usually grant managerial responsibilities to the GP, which entails risk. *Like sole proprietorships, partnerships are typically pass-through businesses for tax purposes. *Pass-through businesses are not taxed at the entity level, passing on all their profits or losses to the partners who are taxed personally. c) limited liability partnerships (LLP): *Does not require a general partner and is instead composed entirely of limited partners. *All partners have limited liability, and the partners share in management responsibilities, typically appointing one or more partners as managing partners. 3) Limited Company: · A limited company has many similarities to limited partnerships but includes several more features that allow greater access to financing and expertise for growth. · there are two types of limited companies: a) Private limited companies. b) Public limited companies. #corporate_issuers.#finance #financial_analysis #cfa

Looking for guidance on how founders can optimize their pay while ensuring cash flow sustainability? Check out this informative article for actionable insights from Lowenstein Sandler LLP partners across practices. #FounderFinance #StartupSuccess #MoneyMatters

Looking for guidance on how founders can optimize their pay while ensuring cash flow sustainability? Check out this informative article for actionable insights from Lowenstein Sandler LLP partners across practices. #FounderFinance #StartupSuccess #MoneyMatters

Business Ownership & Legal Responsibilities It is very important to become aware of the responsibilities of owning a business BEFORE you embark establishing a business. It takes courage to go through the lean times and the times of plenty, knowing how to deal with setbacks and the energy it will require to stay with it no matter what because the vision, mission and purpose of establishing a business is that strong within you. Business Ownership: What does it “REALLY” Mean? Depending upon how you establish your business entity, YOU are ultimately, legally responsible for EVERYTHING that happens in your business. YOU are responsible for EVERYONE you put in charge of your business affairs – accountants, lawyers, managers, employees. YOU are your own fall guy. As an LLC, LLP or LLLP, you OWN nothing but CONTROL everything. As a Tax Exempt Corporation or large Corporation, YOU are responsible to the Board of Directors and Investors with very little to no CONTROL but MUCH Responsibility. Public & Private Foundations: Public Foundations – answers to the Public at large. Private Foundations answer to the Benefactors/Investors that fund your cause. As a Business Owner, YOU are responsible for knowing or having the ability to acquire the information about your industry, its changes, how you can stable being a trend setter, not just a trend follower and the legal requirements to sustain and operate your business. You are the Visionary. YOU are the CREATIVE. Even though you may have hired or developed teams of people who manages these aspect of your business, it is YOU who MUST know what’s going on with every aspects of your business and its day-to-day operations, NOT just the bottom line. You can evolve your business financially just by staying in tune in these areas. Do not fret or fear. Success Beyond Strategz Enterprise, LLC is here to help you navigate the waters of business ownership. DM us if you are contemplating establishing and business. #businessownership #establishingabusiness #SBSLLC #TheMarketplaceStrategzt

Looking for guidance on how founders can optimize their pay while ensuring cash flow sustainability? Check out this informative article for actionable insights from Lowenstein Sandler LLP partners across practices. #FounderFinance #StartupSuccess

Looking for guidance on how founders can optimize their pay while ensuring cash flow sustainability? Check out this informative article for actionable insights from Lowenstein Sandler LLP partners across practices. #FounderFinance #StartupSuccess #MoneyMatters

“Choosing the right business entity for your venture.” . . . There are several types of business entities, each with its own legal and tax implications. Here's an overview of some common business structures: 1. A sole proprietorship is the most basic type of business entity. - Owned and operated by a single person. - The owner is personally liable for all of the business's debts and obligations. 2. Partnership: A partnership is a business owned by two or more people. - Partners divide profits, losses, and management responsibilities in accordance with the terms of their partnership agreement. - Income and losses are reported on each partner's personal tax return. 3. Limited Liability Company (LLC): - An LLC is a hybrid business structure that offers the flexibility of a partnership and the limited liability protection of a corporation. - Owners are referred to as members. 4. Corporation: - A corporation is a separate legal entity owned by shareholders. - Shareholders are only liable for their investment in the company. - Corporations have a more complex structure, with shareholders electing a board of directors to oversee operations. 5. Cooperative (Co-op): Cooperatives are owned and operated by members who pool resources for collective benefit. - Members democratically run the company and share in its profits and benefits. Each type of business entity has unique benefits and drawbacks in terms of liability protection, tax implications, management structure, and regulatory obligations. When deciding on the best business structure for their needs, entrepreneurs should consult with legal and financial professionals. We at #MGCo. Legal take pride in our commitment to providing excellence and are enthusiastic about the opportunity to assist you. #BusinessEntities #StartupTips

Looking for guidance on how founders can optimize their pay while ensuring cash flow sustainability? Check out this informative article for actionable insights from Lowenstein Sandler LLP partners across practices. #FounderFinance #StartupSuccess #MoneyMatters

Looking for guidance on how founders can optimize their pay while ensuring cash flow sustainability? Check out this informative article for actionable insights from Lowenstein Sandler LLP partners across practices. #FounderFinance #StartupSuccess #MoneyMatters

A C-Corporation, commonly referred to as a C-Corp, is a legal business structure that offers distinct advantages and disadvantages for entrepreneurs and investors. One key feature of a C-Corp is its separate legal entity status, providing liability protection for shareholders. This means that the personal assets of shareholders are typically shielded from the company's debts and legal obligations. C-Corps also have the ability to issue different classes of stock, facilitating diverse investment structures. This flexibility makes them an attractive option for businesses seeking to raise capital through equity financing. Additionally, C-Corps can deduct a wide range of business expenses, potentially lowering the overall tax burden. However, they are subject to double taxation, where the corporation is taxed on its profits, and shareholders are taxed again on dividends. The governance structure of a C-Corp involves a board of directors, officers, and shareholders, ensuring a clear hierarchy for decision-making. C-Corps are suitable for large-scale enterprises with extensive growth plans, but their regulatory requirements and administrative complexities may be burdensome for smaller businesses. In conclusion, while a C-Corporation offers liability protection, fundraising flexibility, and a structured governance model, entrepreneurs should carefully consider the potential downsides, such as double taxation and regulatory demands, before selecting this business structure. #startupbusiness #taxreturns