business forms worksheet week2

The business formation attorney helps consumers contact attorneys who specialize in consumer law cases, including bank, insurance, and credit card fraud. And also provides defense tips and case

Limited Liability Company (LLC) combines the tax advantages of a partnership with the limited liability aspects of a corporation. LLC’s are governed by the Uniform Limited Liability Company Act (ULLCA). All members of the LLC enjoy limited liability unless there is serious misconduct is committed by said member(s), or a member fails to follow through on an obligation. All this should be outlined in your preformation contract. You will have more flexibility with taxation and options on how to manage the company. It would be advisable to also have an Operating Agreement. This will dictate how management will be hired and fired, division of profits, how to transfer interest in the event a member chooses to opt out or dies. What steps to take in the event of dissociation of a partner, and if it causes the dissolution of the LLC. Most importantly how the members vote in the LLC. The weight of the members vote is in accordance with the member’s capital

RBF Paralegal Services LLP is a multi-jurisdiction boutique paralegal firm. RBF will service all needs generated in the areas of Employment law, Mediation services and Small Claims Court matters. The head office will be located in Whitby, Ontario. The business organization will be a Limited Liability as LLP’s have the simplicity of a sole proprietorship with the limited liability of a corporation. LLP’s are not subject to numerous technical rules as the only acts LLP’s follow are the Business Names Act and the Partnership Act. Each one of our partners will be personally responsible for their actions in the firm, which will include debts, liabilities and

• Since licensure requirements vary from state to state, be specific about the requirements in the state where you intend to practice.

Ellentuck, A. B. (2009). USING A LIMITED LIABILITY PARTNERSHIP AS THE ENTITY OF CHOICE. Tax Adviser, 40(2), 124-125.

2. Explain at least two (2) reasons why a business owner might opt to become a partnership over a corporation. Provide support for your rationale. According to Eric Feigenbaum of Demand Media, gives

This debate over paralegal licensing is touched on in an article in the Michigan Bar Journal. Timothy P. Flynn, states;

Proprietorships have three advantages: they are easy and inexpensive to form, subject to few regulations, and no corporate income taxes. The disadvantages are difficult to raise capital, unlimited liability and limited life. Partnership are similar to proprietorships in that they can be stablished relatively easily and inexpensively. The partners are generally subject to unlimited personal liability, this makes it difficult for partnerships to raise large amount of capital. Corporation also have unlimited lives, and easy transfer of ownership, limited liability and ease of raising capital to operate larger businesses. The disadvantages are double taxation, the corporation’s earnings are taxed; and then when its after-tax earnings are paid out as dividends, those earnings are taxed again as personal income to the stockholders. Limited liability reduces the risks endure by investors; and other things held constant, the lower the firm’s risk, the higher its

PLLCs are an approved entity to practice law under the Minnesota Professional Firms Act. The Minnesota Professional Firms Act limits what entities may call themselves. “Mainstreeter Law P.L.L.C” is a distinct and distinguishable name. Because the name is distinguishable and contains the ending “P.L.L.C.”, it abides by the naming conventions of the Minnesota Professional Firms Act. In Minnesota, the first step is to file an Articles of Organization, accompanied by a $135 payment, with the Minnesota Secretary of State per Minn. Stat. 322C.0201. This will be sent on June 1, 2018. The Articles of Organization are relatively straight forward. Per the statute, it must include the name of our business, the address of the business and registered agents, and the names and addresses of the members. There is more information that Mainstreeter Law can and will add, but this is all that is required. In addition, Mainstreeter Law would also need to create an Operating Agreement which lays forth important provisions like duties of members, distribution of profits, and how to add new members. Because their 5-year plan may include hiring an associate and making them a partner, the Operating Agreement will explicitly discuss how Mainstreeter Law wants to handle that process. The next step is filing a Statement of Authority. This too is relatively

explaining the differences between a company and a partnership, and the benefits to them of adopting the former.

Name of the Company: - In order to create a partnership a name must be established and the partnership has to undertake their business under this name. If they decide to change the name or use a name that already exists, it will result in the loss of goodwill, an injunction for infringement against the partnership and the respective partners. They have to make sure the name is not copyrighted or trademarked by another existing company. Searches for trademark can be done online too.

My choice for an LLP revolves around the involvement of Partner 1 & Partner 3. Partner 1 is stated to have a full-time job and will not be able to participate in the daily operations of the newly formed entity. However, it will be their initial investment that earns them an equal stake of ownership as Partners 2 &3 (this reasoning discards the possibility for a Limited Partnership). Partner 3 will only be able to participate partially due to their commitments of another part-time job. This leads the need to ensure proper legal

The investor or partner’s liability is limited to the amount they have invested in the company. This setup typically prevents each partner from being held accountability for the wrongdoings of another partner. Limited liability partnership can be used in many fields, it is commonly used in law or accounting firms. The laws relating to an LLP differ significantly from state to state, and between countries. A limited liability partnership is a business structure designed for partners who want an equal voice in managing their business, but not an equal share of the liability. A partner in an LLP is not responsible for the debts or liabilities of the other partners. This makes the LLP a popular choice for professional service organizations such as accounting, architecture, or law firms. An LLP is a form of ownership in which all the partners receive limited liability protection. An LLP is similar to a general partnership in that all the partners can take an active role in managing the day-to-day affairs of the business.

Partnerships are informal to establish and disassemble as start-up cost are inexpensive. When considering beginning a partnership the minimum number of individuals needed is two with a maximum of twenty individuals stated by section 115 of the Corporations Act . If the partnership has the ability to increase their numbers as partners they also increase their funds and bring additional capital available for the business, as well as increase their borrowing capacity . Furthermore Partnerships allow individuals to combine their complementary skills in a collaborative management which in turn allows for a broader array of skills and knowledge that will sequentially increase contacts beneficial to the partnership.

Those legal structures are: sole trader,partnership,partnership with limited liability(LLP),private limited company (LtD) and public limited company (PLC).