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Painted Images Case Study

1177 Words5 Pages

Memorandum

TO: Pat Braden, Gale Roth

FROM: Alexandria Camunas

RE: Painted Images - Courts and Jurisdiction

DATE: 27 February 2018

There are various business structures that Painted Image can select in the development of thier company, which range from sole proprietorship, partnerships, limited liability company (LLC), and corporations (S,B,C)(U.S. small business adminstration SBA). A sole proprietorship is an entity consisting of one person, and is the simplest business structure to form. The owner can conduct business under a trade name and the business can be used to test a company before reforming to a new business structure . The sole proprietors accountable for personal …show more content…

General partners will bear personal liability for the partnership’s obligations, liabilities, and debts. Partnerships can be expensive to establish versus sole proprietorships because of the additional legal and accounting services. A limited partnership would be a recommendation to Painted Images with an agreement being developed due to the amount of investments provided by each investor. There should be a detailed description of how the business decisions are to be made, how disputes will be resolved, and the mangement role of the owner with unlimited …show more content…

To elaborate there can be a disadvantage in regards to taxes for LLC, due to the fact that LLC pay higher amounts of taxes than a corporation and pay federal inclusions (incfile.com 3). If a member decides to seperate from the LLC, then the LLC will no longer exist, which explains a long term commitment will be expected in creating Painted Images as an LLC. The banking for Painted Images must be kept seperate from personal finances and banks may charge different fees to maintain these seperate accounts. Overall, the LLC is my primary recommendation for Painted Images versus the other business

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