Access over 20 million homework & study documents

Taxation LAW

Content type
User Generated
Type
Homework
Rating
Showing Page:
1/6
Running Head: TAX MEMO 1
Tax Memo
Name
Institutional Affiliation

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/6
TAX MEMO 2
To: Penelope, Mark and John
From: Me
Date: 14
th
August 2014
Subject: Entity Selection Issue
Part 1: Various Forms of Organizations
The purpose of this memo is to provide discussion about several business entities while
addressing tax and non tax considerations of the selected entity. There are several types of
business organizations that can be chosen. These include; sole proprietorship, partnerships,
limited partnerships and corporations. In sole proprietorships, the owners of the business are
legally and financially responsible for the business decisions. In partnerships, business owners
tend to be individually and jointly liable for actions of their business. When it comes to taxations,
both the enterprise and individuals are taxed. In limited partnerships business owners have
minimal liability to their investment. In this form of partnership, only the business is taxed while
owners are not legally and financially liable for their actions.
Part 2: Recommended Organization
My recommendation is that Limited Liability Company is the best form of business
organization that can be chosen by the three partners. A limited liability helps to protect the
assets of the owners from taxation, debts and legal obligations of their entity. The owners of the
business do not pay tax at their level of business but tax is paid at the individual level. Apart
from flexibility in management structure, a limited liability has fewer restrictions on how it can
be formed by the owners hence improving its functioning. Unlike all forms of business entities,

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/6

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 6 pages?
Access Now
Unformatted Attachment Preview
Tax Memo Name Institutional Affiliation To: Penelope, Mark and John From: Me Date: 14th August 2014 Subject: Entity Selection Issue Part 1: Various Forms of Organizations The purpose of this memo is to provide discussion about several business entities while addressing tax and non tax considerations of the selected entity. There are several types of business organizations that can be chosen. These include; sole proprietorship, partnerships, limited partnerships and corporations. In sole proprietorships, the owners of the business are legally and financially responsible for the business decisions. In partnerships, business owners tend to be individually and jointly liable for actions of their business. When it comes to taxations, both the enterprise and individuals are taxed. In limited partnerships business owners have minimal liability to their investment. In this form of partnership, only the business is taxed while owners are not legally and financially liable for their actions. Part 2: Recommended Organization My recommendation is that Limited Liability Company is the best form of business organization that can be chosen by the three partners. A limited liability helps to protect the assets of the owners from taxation, debts and legal obligations of their entity. The owners of the business do not pay tax at their level of business but tax is paid at the individual level. Apart from flexibility in management structure, a limited liability has fewer restrictions ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Really helpful material, saved me a great deal of time.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4