RESEARCH SECTION:
The complicated business and legal environment in the global market that exists today
requires careful analysis of all aspects of the potential business/investment. For a
potential business owner, simply choosing which ownership entity requires both legal
advice and tax advice to ensure you are not opening your company up to unnecessary
liability or negative tax implications. The unique characteristics inherent with LLC's,
corporations, partnerships and the like can drastically affect your flexibility and structure
moving forward. The subsequent formation of contracts, managers, etc. also involves a
significant amount of work and time; and is the focus of this research paper. The intent of
this report is to explain and offer an opinion on the disparity between entity formations
and the protection they provide (specifically LLC's) among different states in the United
States. In addition, I will analyze and provide my own input on the varying fiduciary
responsibilities of managers to the related LLC depending on which state the LLC is
incorporated in (including the allowance of an exculpatory clause and its effectiveness
when challenged).
An LLC (limited liability company) is commonly utilized in today's business
environment for many different reasons1:
§ Very few restrictions compared with other ownership entities
§ All owners experience “limited liability” which separates the individual owner's
personal assets from the LLC's assets
3
Ø Partnerships are required to have a managing/general partner
who is not protected by this provision
Ø LLC's can have managing members; and depending on how the contract is
...
... middle of paper ...
...ith a universal business entity formation act. Even though the individual states
are segmented in a way that makes it more beneficial to incorporate in one rather than
another, I feel this can be said across all sorts of different topics: income tax, sales tax,
social issues, immigration topics, etc. The states have the ability to control the direction
of far too many issues at this point. Attempting to withdraw the ability to control one
very important direction, business entity formation and exculpatory clauses, would cause
serious conflict among the states.
1
Klayman,
Elliot.
Real
Estate
Law,
Seventh
Edition.
Chicago:
Dearborn
Real
Estate
Education,
2009.
Print.
2
Barbee, Darren. "Watchdog Bytes." Watchdog Bytes. N.p., 24 Mar. 2010. Web. 07 Dec.
Taxes. We hate to love them and love to hate them. The mere mention of the word can stir heated debates and has done so for centuries. None were more prevalent than during colonial times. During this time, with the British Parliament on one side and the colonists on the other, both argued, either verbally or in written text, about which side did or did not have the right to tax the colonies. Soame Jenyns was one of these men who sided with the mother country in the tax debate.
Taxes. We hate to love them and love to hate them. The mere mention of the word can stir heated debates and has done so for centuries. None was more prevalent than during colony times. During this time, on one side was the British Parliament while on the other side were the colonists, both arguing, either verbally or in written text, about which side did or did not have the right to tax the colonies. Soame Jenyns was one of these men who sided with the mother country in the tax debate.
I recommend that you transition from a sole proprietorship to a limited liability company or LLC. This will allow you to take advantage of certain favorable tax treatments, as well as personal liability protection, for the “members” involved. I will list some key areas where you will benefit from operating
Our current system of taxation is a varied rate percentage based on different income brackets. Many say that it violates our constitutional rights through unequal taxation. Multiple deductions, loopholes, special rates, and a complex system of regulations all characterize our Federal Income Tax System, prompting many to question why it is still being used (Peters, 2013). The current system although bringing in over $3 trillion, taxes income multiple times, and includes the taxing of estate, labor, savings, and investments (National Priorities Project, 2013). The system itself is complex with over 20,000 pages of regulations, requiring a massive filing system, which is set up and maintained by an even larger IRS, requiring over $225 billion in compliance costs (Hall, 2001). One can be hard pressed to find an advantage in the current system, other than the fact that it provides the government with an enormous amount of funds, and it has...
Mehan, C.. N.p.. Web. 19 Jan 2014. . . N.p.. Web. 6 Mar 2014. . Kirkland, Stephen D. "Should We Have A Flat Tax?." Business & Economic Review 49.1 (2002): 27.
The research questions being proposed in this paper include but are not limited the following
To be selected for analysis in this review, the research must have been of great relevance to the topic, show a strong trend in the results, have a clearly structured argument and be considerably authoritative and credible; such that it has respected author/s.
regulatory requirements that the local, state or federal government has placed on the proposed business activity,
In the following of this essay, I will: summarise 1. the question of the research; 2. the theoretical perspective of the research; 3. the conclusion of the research; and 4. describe and critically evaluate the methodology of the research.
The paper opens with review of literature related to the study and proceeds with research framework. Then it presents research methodology along with results. The paper consummate with discussions, conclusions and limitation.
Boje, D. M. , Luhman, J. T. , and Cunliffe, A. L. “ A Dialectic Perspective on the Organization
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...
The following introductory sections describe the problem to be investigated and the goal to be achieved. The introduction also provides an analysis of the relevance and significance of the research and a discussion of barriers and issues related to achieving the goal. In addition, the approach and resources to be used in accomplishing the goal are discussed. Finally, a brief summary is provided.
This chapter dealt with the background of the study, problem statement with purpose and objectives. The assumptions, variables, definition of terms and delimitation of the study are also included in this chapter.