Business Structures, Bankruptcy, and Taxation Chapter 5
|
|
- Matthew Singleton
- 7 years ago
- Views:
Transcription
1 C H A P T E R 5 Business Structures, Bankruptcy, and Taxation Chapter 5
2 Chapter Objectives Understand why a business structure can affect a company financially. Define the requirements for each type of business structure utilized in sport. Compare the advantages and disadvantages of sole proprietorships, partnerships, corporations, and limited liability corporations or limited liability partnerships. Understand some of the tax concerns affecting the sport industry. Describe the importance of tax planning in sport. (continued)
3 Chapter Objectives (continued) Understand how tax law is applied to athletes. Understand the basics of financial risk management. Describe the techniques that can help spot financial trouble. Understand how to reorganize a troubled business. Compare the types of bankruptcies available.
4 Government Structures The text does not focus on government structures. However, it is important to note the following: Government entities can run numerous sport entities (e.g., park and recreation departments, high school athletic departments, community centers, public college athletic programs, and numerous other programs sponsored in whole or in part by the public). Most sports organizations throughout the world are owned or operated by government entities. Olympic programs in most countries are run by the government.
5 Nonprofit Organizations A large number of sport organizations are established and managed under a nonprofit business structure. A nonprofit status is given if the organization has a cultural, artistic, educational, or other public benefit.
6 Types of Business Structures Sole proprietorship General and limited partnerships Subchapter S corporation C corporation Limited liability corporation or partnership
7 Sole Proprietorship A business owned by a single person. Most businesses in the world are sole proprietorships (Cheeseman, 1998). For example, Big Ted s Hometown Buffet, Slick Kitty s Piercing Palace Also independent contractors such as professional bowlers, skaters, and race car drivers (continued)
8 Sole Proprietorship (continued) Advantages of Sole Proprietorships Total control over decision making Revenues taxed only once Great flexibility Easy to form All profits retained by owner Less concern about confidentiality Easy to sell Fewer government restrictions Disadvantages of Sole Proprietorships Limited managerial experience Unlimited personal liability Lasts only as long as the owner lives Limited access to capital funds
9 Partnerships General and Limited Partnerships A division of ownership. If two individuals decide to run a sport business equally, and if each owns 50% (or any other division of ownership) of the business, they are considered partners. General partnerships: Individuals or groups combine resources to share in operating, managing, and controlling as well as profits and liabilities. Limited partnerships: One partner manages; others are financial partners only (limited partners). (continued)
10 Partnerships (continued) Advantages of Partnerships Some control over decision making Revenues taxed only once Great flexibility Easy to form All profits retained by owners Easy to sell Fewer government restrictions Disadvantages of Partnerships Limited managerial experience Joint personal liability Limited access to capital funds Lasts only as long as partnership survives
11 C Corporations Fictitious legal entities whose formulation complies with specific state laws. Also known as corporations. Need to develop bylaws and articles of incorporation that specify how they will conduct business. Can be formed in any state; Delaware is the friendliest. Articles of Incorporation (Cheeseman, 2010) Corporate name Number of shares the corporation will issue Corporation s initial address Name and address of each of the initial incorporators (continued)
12 C Corporations (continued) Advantages of C Corporations Unlimited life of the corporation Liability limited to extent of corporation assets Creditors not permitted to come after individual investors for payment over and beyond their equity investment Ownership interest easily transferable (shares) Ability to hire a broad base of talented managers Tax benefit: dividends paid to corporations are 70% tax free Greater bargaining position with vendors who are more willing to provide credit to a corporation versus a sole proprietor (single owner) Ability to issue publicly traded debt and equity (continued)
13 C Corporations (continued) Disadvantages of C Corporations Complex formation process Need to answer to shareholders who might have ulterior motives Sometimes onerous government regulations Double taxation (corporation is taxed; dividend income to shareholders is also taxed)
14 Subchapter S Corporations Subchapter S Corporations May have up to 35 shareholders Must be based in the United States Tax-Exempt S Corporations For example, charities Can own shares Can own subsidiaries Advantages of S Corporations Income flows directly to shareholders (SH pay taxes as personal income) Not subject to double taxation Can own subsidiaries (helps insulate them further from liability) Disadvantages of S Corporations Cannot be owned by another corporation or partnership Can issue only one form of stock
15 Limited Liability Corporations and Partnerships These business structures have some of the benefits of corporations and partnerships without some of the drawbacks of typical corporation creation. Advantages Classification as a partnership for federal income tax purposes Liability protection afforded to corporations Can be owned by another corporation or partnership Easy and inexpensive to form Disadvantages Newness, no national standard Each state thus has unique rules and regulations
16 Tax Basics Taxes and Cash Flow No matter what organizational structure is chosen for a business, every manager needs to know some tax basics. Cash Flow Cash flow is subject to taxation when disbursed and when received. The value of any financial asset or instrument is contingent on the cash flow produced by the investment. (continued)
17 Taxes and Cash Flow (continued) Tax Rate Affects Investing Decisions If the tax rate on a given investment cash stream is too high, the investor will opt for a different investment that may have a lower return but also lower taxes.
18 Formulas for Investments and Taxes Two formulas to help determine which of two investment options would return the most after taxes are as follows: Tax-equivalent yield Minimum municipal bond yield
19 Tax-Equivalent Yield A formula measures the yield of a tax-free municipal bond against other investments that might require tax payments. The yield a taxable investment would have to produce to match a tax-free investment Tax-equivalent yield = (tax-exempt yield) / (1 tax rate) If a business has a 28% tax rate and a tax-exempt municipal bond pays 5% interest, the necessary return on a taxable investment would be 5% / (1 0.28) = 6.94%. Thus, to maximize your investment return, you should invest in the tax-exempt municipal bond unless you can find another investment that has a return greater than 6.94%.
20 Minimum Municipal Bond Yield This formula determines the yield on a municipal bond (YM) when one knows the taxable bond yield (TBY). YM = (TBY)(1 marginal tax rate) (14.5%)(1 0.31) = 10.0% For example, a person taxed at 31% considering a TBY bond with a 14.5% return In other words, such a person would want to find a municipal bond with a rate of at least 10.0% in order to match the yield of the TBY.
21 Tax Planning If businesses fail to plan for all potential tax liabilities, they could lose significant revenue Value-added tax: A tax that is applied to the value added at every stage of the manufacturing process. The two key concepts for analyzing taxing structures are marginal and average tax rates: 1. Marginal tax rate: The percentage of tax liability imposed on the next dollar of income earned by the company or individual (Spiro, 1996). 2. Average tax rate: The total tax liability imposed on all taxable income.
22 Tax Issues in the Sport Industry Lease values (and amortization) Public tax dollars helping owners Issuing of tax-exempt bonds to sports franchises (private owners) The private-activity test (related to determining if a bond is tax exempt) Bowl games and the taxation of educational (not-for-profit) institutions Forcing nonprofit educational institutions such as schools involved in bowl games and some athletic departments to pay taxes if they are in fact engaged in a business enterprise $1 million received by a title sponsor may be taxable
23 Tax Issues for Athletes Athletes must know how to categorize their income. Revenue Ruling, 1958 Business expenses for athletes are highly diverse. Careful planning by an athlete can reduce potential tax obligations. Tax issues associated with bonuses and business expenses also affect other monetary matters. Failure to properly plan can destroy an athlete.
24 Depreciation of Assets Current expenses can be written off the year they are incurred Capital assets are expensive assets with a longer life (e.g., machinery). For example, if a machine costs $1 million and has a life of five years, the company can depreciate it by $200,000 a year for five years. An athlete s salary in professional sport is the only type of salary that is depreciable (Euchner, 1993). (continued)
25 Depreciation of Assets (continued) These are other capital assets that can be depreciated (Euchner, 1993): The franchise itself Lease contracts Concession contracts Broadcast contracts Customer lists
26 Financial Risk Management Risk management is the process designed to identify problems and produce solutions for various risks that can range from tax concerns to litigation-based issues. Risk management is designed for loss prevention. Insurance protection represents an attempt to shift the risks associated with a financial loss. (continued)
27 Financial Risk Management (continued) Risk financing is designed to help settle a financial dispute after a loss has occurred. Risk financing establishes who will pay. Risk financing is a passive activity compared with risk management.
28 Bankruptcy Bankruptcy is the primary technique used by sport business owners when they are facing mounting obligations and do not have the resources to finance continued operations. Three primary bankruptcy options are available to debtors to obtain court protection from creditors: Chapters 7, 11, and 13. Chapter 11 bankruptcy provides an outline for a formal business reorganization supervised by the court. Most sports team bankruptcies (e.g., Phoenix Coyotes, Texas Rangers, Chicago Cubs, Los Angeles Dodgers, and Buffalo Sabres) are Chapter 11 bankruptcies. Specific protections are afforded a debtor in Chapter 11 proceedings, including an automatic stay that prohibits the commencement or continuation of any legal action against the business (Cheeseman, 2010).
29 Questions for Class Discussion 1. If you were going to operate a small sport business such as a fitness center or sporting goods store, what type of business structure would you try to establish and why? 2. The NFL currently does not allow any team other than the Green Bay Packers to have any shareholders. Should the NFL change this rule? 3. Give the pros and cons of public ownership of a sports franchise. Should more teams be publicly owned so that fans can be owners? 4. With all the money that the NCAA generates, should it still be considered a nonprofit organization? (continued)
30 Questions for Class Discussion (continued) 5. Would you ever want to start your own business? If so, what do you think you would need to be financially successful? 6. Do you think that the LLC structure gives too much flexibility to business owners, who can hide their assets and avoid financial judgments by claiming that the LLC has no money and is just a shell? 7. Should a business be able to choose what business structure it wants to adopt, or should the government decide? 8. Should professional team owners be allowed to depreciate players salaries? Take the pro or con side of this question. (continued)
31 Questions for Class Discussion (continued) 9. Should athletes have to pay tax in states that they play in but do not live in? 10. Should the heirs of team owners have to pay taxes if they inherit a team? If so, should they pay taxes on the value of the team when originally purchased or at the appreciated value? 11. What is financial risk management, and how can it be used by a sport business? 12. What risk management strategies do you take on a daily basis to protect your finances (everything from insurance to preventing identity theft)?
A Guide to LLCs. Forming a Limited Liability Company
A Guide to LLCs Forming a Limited Liability Company Advantages of Forming an LLC Real Estate Investments and LLCs Operating and Maintaining an LLC Comparing LLCs to Other Business Structures Table of Contents
More informationA Guide to Incorporating Your Business
A Guide to Incorporating Your Business Forming a C or S Corporation Advantages of Incorporating Operating and Maintaining a Corporation Comparing C Corps., S Corps. and LLCs Table of Contents INTRODUCTION....................................................
More informationDETERMINING THE BUSINESS ENTITY BEST FOR YOUR BUSINESS
DETERMINING THE BUSINESS ENTITY BEST FOR YOUR BUSINESS 2015 Keith J. Kanouse One Boca Place, Suite 324 Atrium 2255 Glades Road Boca Raton, Florida 33431 Telephone: (561) 451-8090 Fax: (561) 451-8089 E-mail:
More informationWhat is the advantages and disadvantages of limited liability company in China Friday, 25 March 2011 13:48
Each state has different rules governing the formation of a limited liability company. For instance, in North Dakota, a foreign LLC is not allowed for banking or farming. Some states will want a publication
More informationTHE FARRELL LAW GROUP, P.C. A PROFESSIONAL CORPORATION
THE FARRELL LAW GROUP, P.C. A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 4900 FALLS OF NEUSE SUITE 212 RALEIGH, NORTH CAROLINA 27609 ---- (919) 872-0300 FAX (919) 872-0303 GENERAL ISSUES & CONSIDERATIONS
More informationIncorporating Your Business
A Guide To Incorporating Your Business How to Form a Corporation or LLC Reduce Your Taxes Protect Your Assets Minimize Your Liability Improve Financial Flexibility By Attorney Brian P.Y. Liu Founder of
More informationIncorporating Your Business
CorpNet s Guide to: Incorporating Your Business TM www.corpnet.com Congratulations! You have decided to start your own business. That is a courageous step and one that can lead to rewards that no job can
More informationThe sole proprietor is free to make any decision he or she wishes to concerning the business. The major disadvantage is
Chapter 11 Corporate Governance & Business Organizations An entrepreneur is one who initiates and assumes the financial risks of a new enterprise and undertakes to provide or control its management. One
More informationORGANIZING YOUR COMPANY
ORGANIZING YOUR COMPANY Filmmakers frequently establish a company to produce and own their movie. While there is no legal requirement to do so, there may be some benefit to operating under the auspices
More informationFRISSE & BREWSTER LAW OFFICES
FRISSE & BREWSTER LAW OFFICES ADVANTAGES AND DISADVANTAGES OF VARIOUS BUSINESS ENTITIES SOLE PROPRIETORSHIP A sole proprietorship is simple to establish and operate; little ongoing documentation is needed.
More informationBusiness Organization\Tax Structure
Business Organization\Tax Structure Kansas Secretary of State s Office Business Services Division First Floor, Memorial Hall 120 S.W. 10th Avenue Topeka, KS 66612-1594 Phone: (785) 296-4564 Fax: (785)
More informationCOMPREHENSIVE GUIDE TO CHOOSING A NEW BUSINESS STRUCTURE
COMPREHENSIVE GUIDE TO CHOOSING A NEW BUSINESS STRUCTURE 1. Corporations and LLCs: The most common entities 2. Comparing corporations and LLCs 3. Things to consider when forming a business entity 4. Which
More informationHow to Set Up Your Company to Minimize Taxes: Business Organization Basics
How to Set Up Your Company to Minimize Taxes: Business Organization Basics You want to keep a close eye on everything that impacts the financial side of business. After all, finances determine whether
More informationLimited Liability Companies and Corporate Business Structures
Limited Liability Companies and Corporate Business Structures Objectives of a Multiple Entities Strategy Retirement planning/providing for a surviving spouse. Tax management income, self-employment, and
More informationDBI 5 Minute Incorporation Tutorial Incorporation vs Sole Proprietorship
Incorporation vs Sole Proprietorship The primary reason business owners choose to incorporate or form an LLC is to limit the liability they would face in the event of a lawsuit or bankruptcy. Incorporation
More informationINCORPORATING YOUR BUSINESS IS POTENTIALLY THE SINGLE MOST IMPORTANT THING A BUSINESS OWNER CAN DO
INCORPORATING YOUR BUSINESS IS POTENTIALLY THE SINGLE MOST IMPORTANT THING A BUSINESS OWNER CAN DO Mark D. Klein, Esq. KLEIN LAW CORPORATION 15615 Alton Parkway, Suite 175 Irvine, CA 92618 (949) 453-7979
More informationTypes of Business. Part II S Corporations and LLCs
Types of Business Part II S Corporations and LLCs Student Learning Objectives Describe features of the alternative forms of ownership such as S corporations and limited liability company. Alternative Forms
More informationForming Your Esports Organization
Forming Your Esports Organization Richard K. Zepfel and Timothy J. Heggem Payne & Fears LLP Introduction In 2014 over 27 million people watched the League of Legends World Championships on Twitch and ESPN3.
More informationGUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE
GUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE To make your business #CPAPOWERED, call today and let s get started. 2015 American Institute of CPAs. All rights reserved. 15607-312 One important
More informationGUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE. To make your business #CPAPOWERED, call today and let s get started.
GUIDE TO SELECTING YOUR SMALL BUSINESS LEGAL STRUCTURE To make your business #CPAPOWERED, call today and let s get started. One important consideration when starting your business is determining the best
More informationBusiness Organization\Tax Structure
Business Organization\Tax Structure One of the first decisions a new business owner faces is choosing a structure for the business. Businesses range in size and complexity, from someone who is self-employed
More informationStructuring Your New Business By Business Filings Incorporated
Structuring Your New Business By Business Filings Incorporated There are five common business structures entrepreneurs often consider as they start their businesses: sole proprietorship, general partnership,
More informationThe Advantages and Disadvantages of Forming a Florida Limited Liability Company (LLC) Versus a Florida Corporation. by Karen J.
The Advantages and Disadvantages of Forming a Florida Limited Liability Company (LLC) Versus a Florida Corporation by Karen J. Orlin This Note outlines advantages and disadvantages of forming a new business
More informationSole Proprietorship. Forming a Sole Proprietorship. Sole Proprietor Taxes
Sole Proprietorship A sole proprietorship is the simplest and most common structure chosen to start a business. It is an unincorporated business owned and run by one individual with no distinction between
More informationTo Incorporate or Not to Incorporate? That is the Question. By Julia Sylva, Esq.
To Incorporate or Not to Incorporate? That is the Question. By Julia Sylva, Esq. There are many avenues that a company, new or old, may take in the formation of a business. This paper will discuss the
More informationSix Forms of Doing Business
Excerpted from FastTrac NewVenture When identifying an appropriate legal form of business, most often entrepreneurs consider these factors control, taxes, liability, transferability of ownership, longevity
More informationTHE LEGAL ASPECTS OF GOING INTO BUSINESS
THE LEGAL ASPECTS OF GOING INTO BUSINESS Copyright 1997 Board of Regents, University of Wisconsin System Mark Stover, Vicki Lobermeier, Kathy Bartelt, Editors Small Business Development Center This publication
More informationStructuring Your Business
Structuring Your Business Overview of Guide This guide is designed to provide basic information on some of the legal and practical issues to consider when setting up a business and applies only to New
More informationSHOULD MY BUSINESS BE AN S CORPORATION OR A LIMITED LIABILITY COMPANY?
SHOULD MY BUSINESS BE AN S CORPORATION OR A LIMITED LIABILITY COMPANY? 2015 Keith J. Kanouse One Boca Place, Suite 324 Atrium 2255 Glades Road Boca Raton, Florida 33431 Telephone: (561) 451-8090 Fax: (561)
More informationBASIC LEGAL CONSIDERATIONS WHEN STARTING YOUR OWN BUSINESS
BASIC LEGAL CONSIDERATIONS WHEN STARTING YOUR OWN BUSINESS By: Susan A. Keller, Esq. Edwards & Angell, LLP Starting your own business can be very exciting, for it allows you the opportunity to shape a
More informationFIN 3000. Chapter 1: Principles of finance. Liuren Wu
FIN 3000 Chapter 1: Principles of finance Liuren Wu Overview 1. What is finance? 2. Three types of business organizations 3. The goal of the financial manager 4. The four basic principles of finance Learning
More informationChoice of Business Entity. Choice of Business Entity
Choice of Business Entity Dallas Area Paralegal Association September 29, 2010 Presented by: Jim Browne Strasburger & Price LLP Tel: 214.651.4420 Email: jim.browne@strasburger.com Choice of Business Entity
More informationIssues Relating To Organizational Forms And Taxation. U.S.A. NEW YORK Alston & Bird LLP
Issues Relating To Organizational Forms And Taxation U.S.A. NEW YORK Alston & Bird LLP CONTACT INFORMATION Stephanie Denkowicz/ William Ruehl/ Edward Tanenbaum Alston & Bird LLP 90 Park Avenue New York,
More informationDifferent Types of Corporations: Advantages/ Disadvantages of Corporations
Different Types of Corporations: Advantages/ Disadvantages of Corporations Article published at: http://www.morebusiness.com/getting_started/incorporating/d934832501.brc Anyone who operates a business,
More informationWhere you hold your investments matters. Mutual funds or ETFs? Why life insurance still plays an important estate planning role
spring 2016 Where you hold your investments matters Mutual funds or ETFs? Why life insurance still plays an important estate planning role Should you undo a Roth IRA conversion? Taxable vs. tax-advantaged
More informationMajor Business Entities Explained
Major Business Entities Explained Many entrepreneurs start their businesses as a sole proprietor because it is easy and inexpensive. This is never a good idea but in reality it does happen. As the business
More informationTechnology Companies Practice Tax Practice Goodwin Procter LLP. 2010. Goodwin Procter LLP
Technology Companies Practice Tax Practice 2010. Entity Type Number of People Separate Entity? Limited Liability Formation/ Existence Formalities C-Corporation 1+ Yes Yes Filings/Fees On-going S-Corporation
More informationCHOICE OF ENTITY CONSIDERATIONS. A Basic Guide to Entrepreneurs. October 9, 2012
CHOICE OF ENTITY CONSIDERATIONS A Basic Guide to Entrepreneurs October 9, 2012 Bill Osterbrock, Of Counsel Baker Donelson wosterbrock@bakerdonelson.com 404-589-3418 Iliana Malinov, Tax Manager HLB Gross
More informationLESSON PLANS. Contents
LESSON PLANS Contents Total Instructional Time... 2 Lesson: Ticket Pricing... 3 Lesson: Stadium Staffing... 4 Lesson: Ingress & Egress... 5 Lesson: Parking... 6 Lesson: Concessions... 7 Lesson: Sponsorships...
More informationBeginner s Guide to Business Entities
Beginner s Guide to Business Entities by NEIL PATEL on MARCH 31, 2010 One of the most important early decisions an entrepreneur must make in connection with his or her venture is the choice of entity.
More informationLegal Needs for Emerging Growth Companies Presented to UF Small Business Mentoring Program June 9, 2015 by Maxwell L. Minch Gray Robinson P.A.
Legal Needs for Emerging Growth Companies Presented to UF Small Business Mentoring Program June 9, 2015 by Maxwell L. Minch Gray Robinson P.A. About Me Former Navy submariner (nuclear electronics technician)
More informationThe Business Organization: Choosing an Entity
The Business Organization: Choosing an Entity The subject matter is divided into two sections: 1. Section A shows direct comparison of different types of organizational structures. 2. Section B details
More informationChristopher Davis Maryland Institute College of Art January 17, 2014
Mind Your Business Miles & Stockbridge P.C. Christopher Davis Maryland Institute College of Art January 17, 2014 Firm Overview Miles & Stockbridge P.C. is a full-service law firm that represents businesses
More informationCorpNet s Guide to: Forming An LLC. www.corpnet.com
CorpNet s Guide to: Forming An LLC TM www.corpnet.com Congratulations! You have decided to start your own business. That is a courageous step and one that can lead to rewards that no job can offer. When
More informationSession 19 -Taxable acquisitions
-Taxable acquisitions Acquire stock or assets? Assume that Buyer Corporation wants to acquire the business of Target Corporation Target's assets have appreciated and are worth more than their tax basis
More informationI. WHY LIMITED LIABILITY COMPANIES? A. History and Types of LLC s:
I. WHY LIMITED LIABILITY COMPANIES? A. History and Types of LLC s: The concept of the limited liability company did not begin to develop until the 1970 s. In 1977 the state of Wyoming enacted the first
More informationTYPES OF BUSINESS ORGANIZATIONS
CHOOSING THE RIGHT TYPE OF BUSINESS ORGANIZATION LESSON 4 ACTIVITY 1 TYPES OF BUSINESS ORGANIZATIONS Sole Proprietorship A sole proprietorship is a business with one owner, and is relatively easy to form.
More informationThe Legal Aid Society Community Development Project 230 East 106th Street New York, NY 10029 212.426.3000
The information in this document is provided for informational purposes only and does not constitute legal advice. Please consult a qualified attorney prior to acting upon the information contained in
More informationAssessing Viability and Feasibility of Business Ideas. Dr. Neeraj Pandey Assistant Professor LM Thapar School of Management
Assessing Viability and Feasibility of Business Ideas Dr. Neeraj Pandey Assistant Professor LM Thapar School of Management WHY NEW VENTURES FAIL Lack of Objective Evaluation No Real Insight into the Market
More informationChapter Six. Limited Liability Companies
Chapter Six Limited Liability Companies I have discussed various for-profit business structures for authors including sole proprietorships, partnerships and corporations. You may have heard about another
More informationINSIDER TRADING POLICY
INSIDER TRADING POLICY PURPOSE: U.S. federal securities laws prohibit the purchase and sale of securities at a time when the person possesses material, non-public information (positive or negative) concerning
More informationNOLO. Nolo s Guide to Limited Liability Companies: Forming an LLC
NOLO Nolo s Guide to Limited Liability Companies: Forming an LLC Table of Contents LLC Basics...3 Limited Personal Liability for LLC Owners...3 Exceptions to LLC Owners Limited Liability...4 LLC Management...4
More informationU.S. Tax Structures Utilized In Connection With Foreign Investment In U.S. Real Estate. Jack Miles Kelley Drye & Warren LLP
U.S. Tax Structures Utilized In Connection With Foreign Investment In U.S. Real Estate Jack Miles Kelley Drye & Warren LLP May 2, 2016 Topics I. Structuring Objectives II. Underlying U.S. Tax Rules --
More informationFinance 331 Corporate Financial Management Week 1 Week 3 Note: For formulas, a Texas Instruments BAII Plus calculator was used.
Chapter 1 Finance 331 What is finance? - Finance has to do with decisions about money and/or cash flows. These decisions have to do with money being raised or used. General parts of finance include: -
More informationOrganizational Types and Considerations for a Small Business
Table of Contents Welcome... 3 What Do You Know? Organizational Types and Considerations for a Small Business... 4 Pre-Test... 5 Factors for Choosing an Organizational Type... 7 Discussion Point #1: Organizational
More informationHow To Write A Partnership In Wyo.
The Choice is Yours Sole Proprietorship General Partnership Limited Partnership Corporation Close Corporation Limited Liability Company Close Limited Liability Supplement Statutory Trust Limited Liability
More informationIncorporation Guide Guide to Incorporating and Forming a Limited Liability Company
Incorporation Guide Guide to Incorporating and Forming a Limited Liability Company Toll-Free: 877-692-6772 Direct/Intl: 818-224-7639 Our Incorporation Guide is developed with the help of the small business
More informationChoice of Entity: Corporation or Limited Liability Company?
March 2014 Choice of Entity: Corporation or Limited Liability Company? By Gianfranco A. Pietrafesa* Attorney at Law There are many different types of business entities, including corporations, general
More informationK-12 Entrepreneurship Standards
competitiveness. The focus will be on business innovation, change and issues related to the United States, which has achieved its highest economic performance during the last 10 years by fostering and
More informationCorporation or LLC? Ten Differences to Consider (Other Than Taxation) WH ITE PAPER
Corporation or LLC? Ten Differences to Consider (Other Than Taxation) WH ITE PAPER CT Representation Services CORPORATION OR LLC? TEN DIFFERENCES TO CONSIDER (OTHER THAN TAXATION) One of the first and
More informationControlling Legal Risk: Business Formation, Taxes and Intellectual Property
Controlling Legal Risk: Business Formation, Taxes and Intellectual Property Presented by: Frank P. Nagorney, Esq., Cowden & Humphrey Co. LPA Thunderbird School of Global Management September 23, 2014 Copyright
More informationChoice of Entity: Corporation or Limited Liability Company?
September 2012 Choice of Entity: Corporation or Limited Liability Company? By Gianfranco A. Pietrafesa* Attorney at Law There are many different types of business entities, including corporations, general
More informationS Corporation C Corporation Partnership. Company (LLC)
Description An LLC can only be formed by making appropriate filing with the state (see below). Owners are called members and the LLC may be managed by the members, similar to a partnership, or by managers
More informationImportant Information about Real Estate Investment Trusts (REITs)
Robert W. Baird & Co. Incorporated Important Information about Real Estate Investment Trusts (REITs) Baird has prepared this document to help you understand the characteristics and risks associated with
More informationTo LLC or Not to LLC. Matt Rice. What is the right legal entity for your business?
To LLC or t to LLC What is the right legal entity for your business? Matt Rice Principal January 26, 2010 If you find yourself struggling with a decision regarding the appropriate legal structure for your
More information2:4 Letter to client regarding choice between LLC and S corporation
2:4 Letter to client regarding choice between LLC and S corporation Dear [Client]: I understand that you are interested in creating a new business entity for a [type of business] business. This letter
More information1 The Role of Accounting
5 1 The Role of Accounting Accounting Information Accounting provides financial information for a variety of entities to enable them to make informed judgements and decisions. It is important that you
More informationThe ABCs of Entity Choice By Thomas A. Brumgardt
Legal Basics Part 4 in a series The ABCs of Entity Choice By Thomas A. Brumgardt Every lawyer needs to know the basics of advising clients on choice of entity. Even if you do not regularly practice in
More informationAccounting for Sports Franchises
Accounting for Sports Franchises UNVERSITY OF FLORIDA ACCOUNTING CONFERENCE November 4, 2011 Justin Webster, Vice President of Finance DENVER BRONCOS FOOTBALL CLUB Agenda 1. Introduction 2. League/Team
More informationSUBJECT: ACCOUNTING GRADE 11 CHAPTER: PARTNERSHIPS LESSON: PARTNERSHIPS CONCEPTS LESSON OVERVIEW (KNOWLEDGE AREAS) LESSON. 1. Kinds of partners:
SUBJECT: ACCOUNTING GRADE 11 CHAPTER: PARTNERSHIPS LESSON: PARTNERSHIPS CONCEPTS LESSON OVERVIEW (KNOWLEDGE AREAS) LESSON 1. Introduction 2. Partnership concepts 3. Recording of entries for partnerships
More informationA person. who wants BACKGROUND. corporation. corporation. action, the. The C corporation. subject to. qualify to make. or certain
CHOOSING THE FORM OF BUSINESS ORGANIZATION A person who wants to start a business can choose from a variety of different types of business entity formations. For instance, a person can form a business
More informationIncome Measurement and Profitability Analysis
PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance
More informationAccounts Payable are the total amounts your business owes its suppliers for goods and services purchased.
Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold
More informationChapter 1 The Scope of Corporate Finance
Chapter 1 The Scope of Corporate Finance MULTIPLE CHOICE 1. One of the tasks for financial managers when identifying projects that increase firm value is to identify those projects where a. marginal benefits
More informationBusiness Structures. College of Menominee Nation 1. Presented by: Mwata Chisha Business and Public Administration
Business Structures Presented by: Mwata Chisha Business and Public Administration College of Menominee Nation 1 MEET MWATA CHISHA 2 OBJECTIVES Discuss the various types of business entities and their general
More informationCHAE Review. Capital Leases & Forms of Business
CHAE Review Financial Statements, Capital Leases & Forms of Business This is a complete review of the two volume text book, Certified Hospitality Accountant Executive Study Guide, as published by The Educational
More informationSCORE SAS 64 Sponsored by U. S. Small Business Administration ORANGE COUNTY CHAPTER 114, (714) 550-7369 www.score114.org
SCORE SAS 64 Sponsored by U. S. Small Business Administration ORANGE COUNTY CHAPTER 114, (714) 550-7369 www.score114.org The subject matter is divided into two sections: THE BUSINESS ORGANIZATION CHOOSING
More informationPros and Cons of Incorporating a California Construction Business
Pros and Cons of Incorporating a California Construction Business By Scott Green, Esq. GREEN & CAMPBELL, LLP 1777 E. Los Angeles Ave., #201 Simi Valley, CA 93065 Please note that this article is only intended
More informationWillamette Management Associates
Valuation Analyst Considerations in the C Corporation Conversion to Pass-Through Entity Tax Status Robert F. Reilly, CPA For a variety of economic and taxation reasons, this year may be a particularly
More informationTHE BASICS OF CHOOSING A BUSINESS ENTITY
Handout provided courtesy of WHAT IS LIABILITY? 1. Contract Liability THE BASICS OF CHOOSING A BUSINESS ENTITY Colin T. Cameron * Katz Ahern Herdman & MacGillivray PC 1.1. Contract: an agreement between
More informationMEXICO TAXATION GUIDE
THE FLORES LAW FIRM Attorney and Counselor at Law 9901 IH-10 West, Suite 800 San Antonio, TX 78230 TEL. (210) 340-3800 FAX (210) 340-5200 MEXICO TAXATION GUIDE I. RECOGNIZED MEXICAN BUSINESS ENTITIES A.
More informationConsidering Alternatives to Liquidation
August, 2015 Considering Alternatives to Liquidation KNAV is a firm of International Accountants, Tax and Business Advisors. Presence in INDIA USA UK FRANCE NETHERLANDS SWITZERLAND CANADA E: admin@knavcpa.com
More informationChoosing the Right Entity for Maximum Tax Benefits for Your Construction Company
Choosing the Right Entity for Maximum Tax Benefits for Your Construction Company Timely re-evaluation of choice of entity will enhance the shareholder value of your contractor client By Theran J. Welsh
More informationAnnual Report Netflix, Inc. Don Vu ACG2021.001
Annual Report Netflix, Inc. Don Vu ACG2021.001 Executive Summary Netflix, Inc. is a popular subscription service that provides streaming movies and TV shows over the Internet and delivers DVD rentals.
More informationBUSINESS LOAN APPLICATION
BUSINESS LOAN APPLICATION New Relationship Existing Relationship Branch: Officer: BUSINESS INFORMATION Business Name Tax I.D. Individual Name(s) Social Security # Date of Birth: Proprietorship Partnership
More informationHOW TO AVOID POTENTIAL PERSONAL LIABILITY FOR COMPANY OBLIGATIONS PREVENTING OTHERS FROM PIERCING THE CORPORATE VEIL
HOW TO AVOID POTENTIAL PERSONAL LIABILITY FOR COMPANY OBLIGATIONS PREVENTING OTHERS FROM PIERCING THE CORPORATE VEIL Roofing contractors take large risks and face substantial liabilities. By going into
More informationFinancial Information Statement for Businesses
Financial Information Statement for Businesses How to Complete This Statement Enter the most current data available in all spaces. Write N/A in spaces that don t apply to you. The Taxation and Revenue
More informationIncorporating Today's Small Businesses
Incorporating Today's Small Businesses Our Service Parcorp Services offers complete and affordable formation services to small businesses and professional throughout the United States. Simply fill in the
More informationHow to Incorporate Your Business or Form a Limited Liability Company (LLC) Quickly and Easily 800-209-0128 WWW.INCORPORATE.COM WWW.LLC.
How to Incorporate Your Business or Form a Limited Liability Company (LLC) Quickly and Easily 800-209-0128 WWW.INCORPORATE.COM WWW.LLC.COM TABLE OF CONTENTS With help from the Company Corporation, incorporating
More informationForms of Ownership. Entrepreneurship. Mr. Rodrigues
Forms of Ownership Entrepreneurship Mr. Rodrigues Objectives Identify the significance of business ownership to the entrepreneurial process. Identify and discuss forms of business ownership Identify and
More informationTypes of Business Ownership
Types of Business Ownership Sole Proprietorship A sole proprietorship is the easiest and simplest form of business ownership. It is owned by one person. There is no distinction between the person and the
More informationSTARTING A BUSINESS IN NEVADA E. ALAN TIRAS, ESQ.
STARTING A BUSINESS IN NEVADA BY E. ALAN TIRAS, ESQ. LAW OFFICE OF E. ALAN TIRAS, P.C. 865 Tahoe Boulevard, Suite 214 Incline Village, Nevada 89451 (702) 832-5858 (702) 832-5810 (fax) HEADQUARTERS 865
More informationMX394 Choosing an Organizational Structure for Your Aquaculture Busin...
1 of 5 4/30/2010 2:07 PM University of Missouri Extension MX394, Reviewed October 1993 Choosing an Organizational Structure for Your Aquaculture Business Susan T. Kohler SIUC Office of Economic and Regional
More informationBUSINESS ENTITIES IN COLORADO
BUSINESS ENTITIES IN COLORADO Types of Colorado Business Entities When starting a business there are many different formats available. In fact, there are so many choices it can be quite dizzying. In general
More informationtutor2u tutor2u Interactive Business Simulations Finance: Cash Flow Management
Interactive Business Simulations Finance: Cash Flow Management Note: this interactive simulator is designed to be viewed using an up-to-date internet browser. Users must also have Macromedia Flash Player
More informationConsiderations in the Health Care Company Tax Status Conversion from C Corporation to Pass-Through Entity
Health Care Forensic Analysis Insights Considerations in the Health Care Company Tax Status Conversion from C Corporation to Pass-Through Entity Robert F. Reilly, CPA For a variety of economic and taxation
More informationDAVID THOMAS LTD GUIDE TO COMPANY INSOLVENCY
DAVID THOMAS LTD GUIDE TO COMPANY INSOLVENCY Ver 1 Feb 2015 Phone : 09-215-6893 07-576-8832 021-124-6689 Email: david@david-thomas.co.nz Introduction Welcome to our guide to liquidations. This guide is
More informationTax Considerations Of Foreign
FIRPTA requires that a buyer withhold 10% of the gross sales price, subject to certain exceptions, and send it to the Internal Revenue Service if the seller is a foreign person. U.S. Taxes Foreign investors
More informationFinancial Statement and Cash Flow Analysis
Chapter 2 Financial Statement and Cash Flow Analysis Answers to Concept Review Questions 1. What role do the FASB and SEC play with regard to GAAP? The FASB is a nongovernmental, professional standards
More information