Acct 553 Wk 6 You Decide

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Penelope, Mark, and John I have reviewed your situations and each of your tax considerations and outlined my advisement below. Part I: Discuss the various forms of organization that are available to Penelope, Mark and John. There are a few different options from which you can choose to organize your business under. For example: partnership, LLP, S Corporation, C Corporation for which I know you are all familiar with. It is my duty to give you my own educated and unbiased opinion to which would be most beneficial to all of you. Part II: Make your recommendation as to what form of organization you believe will be best and be sure to explain the reasoning for your choice. I find the Limited Liability Partnership to be the best form of organization for your company. It will provide the company with adequate protection while safeguarding each partner’s personal assets as well. Under this organization each of you will be strictly removed from responsibility from one another’s actions or potential misconducts. Given that the three of you are great friends, I find this to be the most attractive quality in an organization. Regardless of the outcome of the business I know that you will all find comfort in the safety of the LLP. In turn I find this will lift any further burden and allow you to all perform your best for this new company. In addition, a LLP will provide flexibility in business ownership. Each partner will have the authority to decide how they will each contribute to the business operations. Managerial duties can be divided equally or separated based on the experience of each partner. In addition, partners who have a financial interest in the company can elect to not have any authority over business decisions yet still maintain ownership rights based on their percentage interest in the company. I base on Wikipedia to answer Part II Part III:
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