For Wanda to expand her business and enjoy comfortable financial responsibility and liability, she has two options to consider, Limited Liability Corporation and Partnership Corporation. In limited liability corporation, she will have the benefit of separate legal existence and therefore the company would run its operations such as hiring, sale and purchase independent of the owners. However, the profits of the company will be taxed on the owners’ personal tax returns. If she chooses partnership, Wanda will enjoy full control of the business and have advantage of limited liability. However she will face delay in decision making as all members will have to be consulted. I recommend limited liability corporation for Wanda’s Salty Pawz. If I were a business owner, I would select limited liability as an option for expansion. In addition to limited liability, the corporation enjoys simplicity in documentation and separate legal existence which is also required for Salty Pawz.
I agree with Scott Twelves opinion since developing a limited liability company to national company is also easier. As for financial management, the business will be able to sustain its operations without owners’ intervention. In case of legal requirements, it will be able to hire attorneys on its own. Because of limited book keeping, decision making process for Salty Pawz will also be sufficient. If a person decides to withdraw ownership of the LLC, the company’s operations will not be greatly affected.
Delegate your assignment to our experts and they will do the rest.
My opinion differs from Sara Runyan’s comment. Since Wanda’s intention is to ease personal responsibility on the business, she will still have full financial responsibility if she chooses partnership business. If she chooses wrong partners she may also suffer losses because of the limited regulations of partnership business by the government.
