Compare and contrast business structures

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Running head:COMPARE AND CONTRAST BUSINESS STRUCTURESCompare and contrast business structuresStudent’s name:Name of the university:Author’s note:
1COMPARE AND CONTRAST BUSINESS STRUCTURESTo: Supervising LawyerFrom:Date:Subject: Types of business and what would be suitable for Ali BerryBefore starting the business the owners must decide what type of business entity theywant to establish. The form of a business entity determines which kind of income tax return theowners want to file1. As the business change and grow, sometimes the owners want to move to adifferent type of business structure. There are mainly four types of business structures, soleproprietorships, partners, limited partners and limited liability partners.A sole proprietorship cannot be defined as a legal entity as it just refers to as theindividual who owns the business. The owner of the business is responsible for the debts and thistype of business runs under the name of the owner. Sole proprietors register the name of thebusiness to secure a local license2. The owners of the business can keep the profit because thepersons are personally liable for the business entity. However, a creditor can demand thepersonal assets and the business assets to satisfy the debts. The sole proprietor owners can ownthe organisation for any duration and they can sell the business. Sole proprietors can pass thebusiness to their heirs. Sole proprietors should have to comply with the licensing requirements inCanada. To register the business in Canada, business owners need to register with the territoriesand provinces where they want to do the business. The owners will get a unique federal businessnumber and they will also have a tax account.Partnership business is owned by two or more individuals. Partnership types ofbusinesses are inexpensive and easy types to start. In General partnership business, all thepartners need to take the share of profits as well as the losses of the business entity. Moreover,the partners are jointly and personally responsible for the liabilities3. In partnership types ofbusiness, the financial resources must be combined with the partners of the business. Legalagreements between the partners should be there. The partnership agreement is important as itcreates the terms of the partnership that would help the individual partner to solve the disruptionin a later stage. In order to register the business in Canada legally, the business must have a nameand it determines the availability of business and register for license, taxes and permits. Thepartners need to open a bank account to release the taxes. In case of the general partnership, eachof the partners is personally liable or debts as torts can result from the partnership operation inbusiness. In general partnership, the partners can be sued for from the performance of thebusiness.1Allen, William T., and Reinier Kraakman.Commentaries and cases on the law of business organization. WoltersKluwer law & business, 2016.2Segal, Steven P., and Jae-Sung Choi. "Ownership form and quality of care in sheltered care facilities: Chain-affiliated business vs. sole proprietorship." (2016): 28-37.3Erler, Andre R., and W. Richard Peltier. "Projected changes in precipitation extremes for western Canada based onhigh-resolution regional climate simulations."Journal of Climate29, no. 24 (2016): 8841-8863.
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