Jones purchase the stock of Smithon outright leaving Smithon intact? The stock should not be purchase by Mr. Jones. Mr. Jones acquiring the assets, liabilities and also would inherit the contractual obligations of the selling corporation, would, be the results of the purchase. In lay terms, he has bought the existing Smithon Corporation and he is responsible of ensuring daily operations run efficiently but the tax aspect of acquisition he is responsible for existing and any future tax liabilities that the selling corporation had. It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock.
They see the short-term loan as a quick fix that can get them through to the next payday. These lenders don’t require any kind of credit check or form of collateral. A user can walk into a payday loan shop with some identification, a recent paystub, and a check and literally walk out 15 minutes later with cash in hand. Researchers argue that many payday loan customers may not even know what an APR is, let alone have any basis for judging whether 400 percent is high or low (Fisman, 2009). Things start to spiral out of control when borrowers are unable to make their payment.
A C Corporation is considered an entirely separate entity and those that make up the company such as officers, directors, managers, and shareholders are not personally liable for the acts of the company. This is the main advantage of a C Corporation. A disadvantage is that profits of the corporation are taxed at two different levels. One at the corporate level and then another on the dividends of the shareholders. · Liability-A C Corporation has limited liability in that it is seen as a separate entity from the owners, which in turn protects their personal assets from being taken to pay for the company’s debt or liability losses.
Like the partnerships the S-corporations basically have no federal income taxes. S-corporations owners are taxed on their portion of earnings. The popularity of S-corporations fluctuate with the income tax law. Sometimes the corporation taxes are more than the individual and vice versa. Some of the similarities to a closely held corporation is each shareholder's liability is limited to the amount of their investment.
The NHS does not have hospitals in other countries as the service is only provided to people paying taxes in the UK. Ownership A Public Limited Company (PLC) is a company which trades its securities on the stock exchange and can be bought and sold by anyone, it also has limited liability which means that the shareholders won’t lose anymore more money than they put into the company; a Private Limited Company (LTD) also sells shares but not on the stock market, in order to get a share in a LTD you will have to be asked to buy one; an LTD also has limited liability. Other types of ownership of business is a sole-trader and a partnership; a sole-trader is owned and run by one person which will have to deal with everything for the business to run properly, one example of a sole-trader is a corner-shop. A partnership is a type of ownership where 2 – 20 people own and run the business, an example of a partnership is a local accountancy
The owner is also held responsible for all legal and financial liabilities. Liability: In a sole proprietorship the owner is liable for all debts of the business. If the business assets are not enough to cover any debt creditors can come after the owners personal assets. Income taxes: In a sole proprietorship the owner claims the business income on his or her personal tax form only. The business is not required to file taxes, as the business and owner are considered one.
Corporations can choose either calendar year or fiscal year. It is not dependent on the tax years of the shareholders. Sole proprietorship and Partnership generally use the tax year of the owner. S-Corp typically has to use the calendar year, unless it can show the IRS why
Corporation Tax is a tax on the taxable profits of limited companies and other organisations. Tesco is a large company in the UK, so they will have to pay corporation tax regardless were their profit is coming from. Tax has an impact on Tesco as a whole; tax will be taken of Tesco’s profit which will result in less dividence for shareholders. Invest can be put off as their main and objective is to receive the largest amount of dividence possible. Direct support With business like Tesco, the government provides direct support concerning specific business activities.
The limited liability of limited partners of a limited partnership only up to their capital contributions to the limited partnership; limited partners are not personally liable for the debts and obligations of the limited partnership (Cheeseman 2010). The LLP is filed with the appropriate secretary state of office. The partners handle the daily operations and do not have to consult with limited partners for most decisions. LLP have the same tax benefits of a general partnership. Akiva and Tara are liable to maintain a one million dollar of liability insurance which covers any negligent torts or wrongful acts by the partners or employees of the
All businesses need to consider both the legal and financial aspects that will affect in starting up a business. My business is a sole trader therefore; I need to be careful in planning and also to make sure that I abide on the law. In this task I will consider the legal and financial aspects of my business as a sole trader. LEGAL STATUS AND LIABILITY Firstly, starting up a sole trader business is not easy although it is said to be the simplest form amongst any business organisations. This is simply because there are no legal requirements and I only need to set up and all incomes or any profit will be all mines alone.