Question

Ben and James have been operating their advertising business as a partnership for the last three...

Ben and James have been operating their advertising business as a partnership for the last three years. Business has been fairly good ever since they commenced. But now, with the recent trade war between China and the United States, the future of the advertising industry, as with just about all industries, looks dim. Concerned that a downturn in the economy could affect their business and render them personally liable for any losses sustained, Ben and James are contemplating on converting their partnership into a business entity that would shield them from any personal liability against such debts. However, both insist on running the business together, and with as little formalities as possible.

Required: Advise Ben and James on the type of business entity that would best suit their needs.

Homework Answers

Answer #1

Answer) The type of business entity which would best suit Ben and James needs is LLC partnership. An LLC partnership Company can be defined as company which has limited liability and multiple members who can run the business together. In this type of entity, member's personal assets are protected in case of any debt or losses which the business incurrs and it is also convenient to form. In a minimum paperwork , a LLC partnership can be formed.The documents are-1) Articles of Association.

2-) Operating Agreement.

3-) Business Licence.

4-) Tax forms.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ben and James have been operating their advertising business as a partnership for the last three...
Ben and James have been operating their advertising business as a partnership for the last three years. Business has been fairly good ever since they commenced. But now, with the recent trade war between China and the United States, the future of the advertising industry, as with just about all industries, looks dim. Concerned that a downturn in the economy could affect their business and render them personally liable for any losses sustained, Ben and James are contemplating on converting...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT