Pros And Cons For Each Business - 936 Words

When starting a business you have to weigh out the pros and cons for each business. There are many different types of businesses. Some examples are partnerships, corporations and limited liability companies. A partnership is an association between multiple people to carry out a business with the view for profit. If managed correctly, partnerships can have many advantages. One such advantage is the split profits of the business. Each partner receives a proportion of business profits that are specified in the partnership agreement. This prevents one person from obtaining all the profits. Another advantage is that each property acquired by a partnership is the property of the partnership and not each individual partner. Therefore, if you owe a creditor money, you cannot sell the partnership property to clear off your personal debt. In addition, partnerships are immune to taxes. If your business is a pass through entity, the business will have no tax liability. Instead, business profits will go to the owners and they will have to pay taxes on their income. You have the option to dissociate from a partnership if you choose to do so. When this happens, your partners will purchase your interests and will continue the business without you. With so many advantages, there would be little thought to the disadvantages. Partnerships can be dreadful at times. They have many disadvantages. For example, if your business were to incur a loss, the loss will be split amongst you and yourShow MoreRelatedPartnership686 Words   |  3 PagesPartnership vs Sole Proprietorship March 11, 2014 Thinking about starting your own business? Do you prefer to work alone? Or do you prefer to work with a partner? If you choose to work with a partner then the best business structure for you would be the partnership structure. First you must ask yourself; do we have the same vision or objectives on how to run the business? Are we able to communicate well with each other? Most important question of all, do you trust this individual? If two of theseRead MoreVw of America Managing It Priorities1683 Words   |  7 Pagescost to the company. This could have been a major deciding factor as the company estimated the cost of all business projects to be $210M and only had a budget of $60M. This type of outsourcing is also limiting the knowledge of the company’s past IT roadblocks as many or all of the long term associates have left the company during the transitions. This transitioning allowed each of the business units to begin to develop their own relationships with web developers over several years in an effort to bypassRead MorePros And Cons Of Tariffs1127 Words   |  5 Pages Pros and Cons of Tariffs Principles of Macroeconomics Columbia Southern University BBA-2401 Angelo Jones Managing the how goods and services enter or leave this country (import/export) is an important process that allows for us to control the economic status of our nation. 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Due to the nature of their invention, whichRead MoreWho Is An Entrepreneur?1519 Words   |  7 Pagesto run a small business and assume all the risks and prize of a given business venture, goods or services offered for sale. The entrepreneur is usually seen as a business pioneer and innovator of new ideas and business practices. Now, if I am to define what entrepreneurship is, it’s just like been my own boss. There are many ways one can take to get there. I thought it may be helpful to explain the most common ones here, together with some open discussions on the pros and cons of each. This is not