wk 4 ex 3 - Memorandum To Mr Jim Baku and Mr Scott Hanson...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Memorandum To Mr. Jim Baku and Mr. Scott Hanson From Ms Sheri Brown CC Subject forming a corp. Date 08/28/2010 Dear Mr. Baku and Mr. Hanson I learned about your venture in food and beverage. I became aware of your difficult decision, to open the restaurant under a partnership or a corporation. As I have opened a few successful dives, I recommend that you open your business under a partnership. You can always change it to a corporation later, after you grow a bit. A corporation has a sizable output of money over opening a partnership. A corporation must be bothered by having a board of directors, pay corporate income tax (above what you pay as an income), record keeping of meetings, referendums, and such are such a headache, as to if you were a partnership would not have to deal with. The upside to a corperation, is it still exists when a partner passes away or is bought out. A partnership only lives as long as the two indulge each other, or replacements are found. A corporation can live forever without any extreme paperwork of property turn over rights, or lawyer...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online