What ownership form might you choose for a small quadraplex (apartment) you wish
ID: 2807771 • Letter: W
Question
What ownership form might you choose for a small quadraplex (apartment) you wish to buy and manage yourself? Discuss the advantages and disadvantages of that form.
· Limited Partnerships (also known as a partnership with limited liability) are more complex than general partnerships. Limited partnerships allow partners to have limited liability as well as limited input with management decisions. These limits depend on the extent of each partner's investment percentage. Limited partnerships are attractive to investors of short-term projects. · Joint Ventures act as general partnership, but for only a limited period of time or for a single project. Partners in a joint venture can be recognized as an ongoing partnership if they continue the venture, but they must file as such. Forming a Partnership To form a partnership, you must register your business with your state, a process generally done through your Secretary of State's office. For partnerships, your legal name is You'll also need to establish your busi the name given in your partnership agreement or the last names of the partners. If you choose to operate under a name different than the officially registered name, you will most likely have to file a name, or DBA name, short for "doing business as"). (also known as an assumed name, trade and permits Once your business is registered, you must obtain business_licenses and permits Regulations vary by industry, state and locality. Use our Licensing & Permits tool to find a listing of federal, state and local permits, licenses and registrations you'll need to run a business. tnd a liting of federal, sate state and locality, Use If you are hiring employees, read more about federal and state regulations for employers Partnership Taxes Most businesses will need to register with the IRS, register with state and local revenue agencies, and obtain a A partnership must file an "annual information return" to report the income, deductions, gains and losses from the business's operations, but the business itself does not pay income tax. Instead, the business "passes through" any profits or losses to its partners. Partners include their respective share of the partnership's income or loss on their personal tax returns.Explanation / Answer
In my opinion the best form of business to own & operate a single asset is 'Sole Proprietorship'.
My reasons for that are simple. Since there is only apartment that I wish to own, it’s easy for me to be there and look after it. Very minimal staff is required to be employed for Operation & Maintenance. This way, I don’t have to go through the hassles of forming a company or even a partnership. I am the sole owner and all the profits are mine alone.
The Advantages of this form of business in the present case (Other than the ones already mentioned in the image you’ve shared) will be:
There are generally no disadvantages in the present case of being a sole proprietorship other than the unlimited liability part. I will be personally responsible for every debt of the business since the business
is not separated from me. As far as the ‘control burden’ disadvantage you’ve mentioned, I can easily overcome that in the present case by having a superior functioning under me since there is only one premises and thus oversight is easier.
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