Selection of Business Structure and Portfolio Investment for Roohealth

ACCT3001
ADVANCED
TAXATION

Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Letter of advice to Anna and Eric along with recommendation outlining the impact on their
profit drawdown from Roohealth:..........................................................................................4
Advice to Anna and Eric that how each of their portfolio should be structured along with
analysis of appropriateness of each of the potential entity structures:...................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
In this report the discussion has been carried out the selection of business structure in order
to start the business by Anna and Eric. The legal status has been discussed as to which type of
status has been beneficial for them so as to run the entity in the smooth manner for the long run.
The recommendation has been made to start the limited liability partnership firm as the
compliance requirement under this is very limited and function could be carried out easily
without must difficulty. Further in the below report the suggestion has been given to both of
them regarding the investment of funds in the stock market so as to earn the maximum profits as
they can.

INTRODUCTION
Taxation plays the vital role in an economy as the revenue that has been collected will be
used for the public welfare and providing salary to the government employees. With the help of
this tax collection the nation can be their infrastructure accordingly. The tax is collected on
goods or services provided known as goods and service tax. The tax that has been collected on
various group of persons are being income tax which is levied on group of individuals such as
individuals, partnership firm, sole proprietor, local authorities etc. This report shows the
recommendation that has been given to Anna and Eric as both wants to start the business but
does not know that what should be the legal status they should consider to start the venture.
Further an advice has been given to them regarding the portfolio investment they want to invest.
TASK
Letter of advice to Anna and Eric along with recommendation outlining the impact on their profit
drawdown from Roohealth:
To
Anna and Eric
Roohealth
June 3, 2022
130 Comer street, Cross Road, 245230
Dear Sir/Madam,
In the letter mentioned below the general discussion has been conducted regarding the selection
of the structure of your business that what could be its legal status. While selecting the structure
special consideration has been given to benefits and limitation of various entities considering the
future growth of the organisation, tax benefits they could get, legal compliances the business
could go through and so on. After considering all the above factor, the recommendation has been
given regarding the selection of business to Amma and Eric that how could they start their
business. In this letter a discussion will be carried out for the selection of your business structure
to start your business. On moving further in the statement the suggestion has been given to both