Proprietorships, Partnerships and Corporations Term Paper by scribbler
Proprietorships, Partnerships and Corporations
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The paper discusses the four primary types of entities that represent the vast majority of business organizations: proprietorships, partnerships, limited liability entities (companies and partnerships) and corporations. The paper describes how each entity will vary in its tax treatment, owners' exposure to liability and the legal and formal requirements necessary to maintain the entity. The paper shows how each form has its own set of advantages and disadvantages and through careful consultation with accounting and legal professionals, the owner of a new business should be able to select the form that best suits his needs.
Limited Liability Entities
Limited Liability Entities
From the Paper:"Within the category of partnerships exist several subcategories, including general partnerships and limited partnerships. A general partnership or joint venture can be formed without any formal documentation or filing. In fact, although probably not desirable, a general partnership can be formed by oral agreement without any written documentation. Absent agreement among the partners, a general partnership generally will be governed by the partnership laws of the state in which it was organized, which, in most jurisdictions are based on some version of the Uniform Partnership Act ("UPA"). A partnership formed under a state statute conforming to the UPA will be treated as a partnership for federal income tax purposes (U.S. Treasury Regulations, sec. 301.7701-2). A general partnership is based on the concept of agency under which one partner's actions are considered to be on behalf of all partners (Uniform Partnership Act, sec. 9). All partners in a general partnership are jointly and severally liable for all partnership liabilities (Uniform Partnership Act, sec. 15). Thus, the liability of a general partner in a general partnership is essentially the same as a sole proprietor, except that the general partner is also liable for the acts of his partners (Uniform Partnership Act, sec. 13)."
Sample of Sources Used:
- NCCUSL. (1997). Uniform partnership act.
- NCCUSL. (2001). Uniform limited partnership act.
- Olson, B. & Thompson, C. (2009). Business law desk book: formation and operation of businesses. St. Paul: West Publishing.
- United States Internal Revenue Code. (2010). U.S. Code, title 26.
- United States Treasury Regulations. (2010). Code of Federal Regulations, title 26.
Cite this Term Paper:
Proprietorships, Partnerships and Corporations (2013, May 01) Retrieved March 23, 2023, from https://www.academon.com/term-paper/proprietorships-partnerships-and-corporations-152955/
"Proprietorships, Partnerships and Corporations" 01 May 2013. Web. 23 March. 2023. <https://www.academon.com/term-paper/proprietorships-partnerships-and-corporations-152955/>