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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...
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This note was uploaded on 09/26/2010 for the course BUSINESS acc 201 taught by Professor Errico during the Spring '10 term at Ashford University.
- Spring '10