In light of their businesss debt and the injury

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In light of their business’s debt and the injury sustained by the customer, the mostadvantageous position for Jeb and Josh to be in would be if they had formed a limited liabilitycompany, or LLC, by filing articles of organization in their state. They would have only limitedliability for the debt and injury as if they were a corporation, meaning that they stand to lose onlytheir interests in the business rather than any personal assets. However, their business would beunincorporated, so they would retain ownership and divide management responsibilities as theychose. Also, an LLC is not treated as a separate legal entity, so it is not double taxed like acorporation. Each partner, or member, reports profits on their personal taxes only, and no taxesmust be paid for the business itself. Further, ordinary business expenses can be deducted fromthe business’s profits before they are distributed to the owners, so owners are not taxed as muchpersonally for profits (Kubasec).Natalie,I enjoyed reading your post. Your description of the main types of business entities isvery detailed and informative. In the case of Jeb and Josh, I believe they were involved in apartnership. To be more specific, I believe they were a part of a Limited Partnership. A LimitedPartnership is a partnership consisting of one general partner and at least one limited partner whodoes not have any part in the management of the business (Kubasek 774). This seems to fit sinceJeb is not participating in the day to day operations of the store and the excursions. Josh had therole of the general partner, while Jeb had the role of a limited partner. Since Jeb’s role in thebusiness was as an investor, he did not have the drawback of personal liability. Personal liabilityremains with the general partners (Limited Partnerships, 2015). Since Jeb is the general partnerof the company, he is the person responsible for the customer that was hurt in the accident.ReferencesKubasek, Nancy.Dynamic Business Law, 2nd Edition. McGraw-Hill Learning Solutions, 2012.VitalBook file.Limited Partnerships. (2015, May 18). Retrieved August 22, 2015, from
Tiffany Nolancase study threeThere is a lot of information left out of this scenario. We know that Jeb is involved in twobusinesses; one it seems he may have started alone, and the other he started with his friend Josh.Since the scenario states he went bankrupt, not the company, after the government shut down thewindmills, I am assuming that was a sole proprietorship. This is simply because he has gonebankrupt and in a sole proprietorship the proprietor is held liable for all losses, the down side ofcreating one.There are several types of business entities. They consist ofSole Proprietorship,Partnership, CorporationandLimited Liability Company (LLC).More specialized types includeCooperative, Joint Stock Company, Business Trust, Syndicate, franchiseandJoint Venture.Eachof these has advantages and disadvantages.

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Term
Summer
Professor
N/A
Tags
Business Law, Corporation, Types of business entity, Types of companies, Legal entities

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