Partnership or Corporation
1. What are some of the advantages and disadvantages of Thomas and Bryan forming a corporation?
First of all, a corporation is a legal entity, created by the state, whos assets and liabilities are separate from its owners. It has some rights, duties, and powers of a person, as well as the rights to receive, own or transfer property.
It is also important to mention that corporations are typically owned by many individuals and organizations who shares of the business, called stock.
After this, I found some advantages or disadvantages for Thomas and Bryan if they want to form a corporation.
First of all, they will not be able to form a ...view middle of the document...
2. What are the advantages and disadvantages of their forming a partnership?
A partnership is a simple way for two or more people to organize their joint business. They are typically larger than sole proprietorship but smaller than a corporation.
There are two types of partnership: General Partnership, that involves a complete sharing in management, as well as in liability of the business, and Limited Partnership that has at least one general partner, who assumes unlimited liability. After saying his, we can consider this as the most important disadvantage to Thomas and Bryan if they wanted to form a partnership.
Considering that they are going to contribute with the same amount, this disadvantage of assuming unlimited liability for the debts that could be incurred by the business, if it is not going well.
Another disadvantage for both will be that each of them will be responsible of the action of the business decisions of the other individual. A bad decision by Thomas may put Bryan´s personal resources in jeopardy, and vice versa.
The first advantage is that it will be easy to form a partnership, not legal characters have to be granted , but the name of Thomas and Bryan´s business will be registered.
Another advantage is that both of them will be able to share talents, knowledge, skills, and even financial resources. Even though it does not sound as good as a corporation, partnership will...