Tag: Organization

Health Insurance in India still remains an untapped market #china, #russia, #health, #south #africa,

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Health Insurance in India still remains an untapped market

In a country where less than 15 per cent of population has some form of health insurance coverage, the potential for the health insurance segment remains high. It seems that there is an urgent need to ramp up the health insurance coverage in the country as out-of-pocket payments are still among the highest in the world.

Furthermore, according to the statistics of the World Health Organization (WHO), in 2011, India has spent only 3.9 per cent of gross domestic product (GDP) on the health sector which is the lowest amongst the BRICS (Brazil, Russia, India, China, South Africa) member countries pack.

Moreover, amongst the BRICS nations, in 2011, Russia s out-of-pocket expenses stood highest at 87.9 per cent closely followed by India (86 per cent), China (78.8 per cent), Brazil (57.8 per cent), and South Africa (13.8 per cent). On the other hand, these expenses in developed economies of US and UK were comfortably poised at 20.9 per cent and 53.1 per cent respectively.

High out-of-pocket expense is exactly the reflection of low health insurance coverage in India. Sudip Bandyopadhyay, President, Destimoney Securities, opined, We don t have the insurance to cover and thus we end up paying from our own pockets. Once the penetration of health insurance increases, out of pocket payments will come down. In US and all, health insurance coverage is around 80 per cent.

Reasoning out the low health insurance coverage in India, Antony Jacob, CEO, Apollo Munich Health Insurance, said, Only about 12-13 per cent of population has some form of health insurance coverage, including those who are covered through some form of government schemes. People are yet to accept health insurance as a financial tool for medical emergencies. They usually procrastinate when it comes to buying health insurance unless they are faced by a challenging situation.

Although the Indian health insurance market still lags behind other countries in terms of penetration yet the health insurance segment is rising. It continues to be one of the most rapidly growing sectors in the Indian insurance industry with gross written premiums for health insurance increased by 16 per cent from Rs 13,212 crore in 2011-12 to Rs 15,341 crore in 2012-13. The health insurance premium has registered a compounded annual growth rate (CAGR) of 32 per cent for the past eight financial years.

Health insurance segment still remains an unexplored territory in India. Jacob at Apollo Munich Health Insurance asserted, Health insurance has become one of the most prominent segments in the insurance space today and is expected to grow significantly in the next few years. As spending on healthcare in India is expected to double in a couple of years, we believe that health insurance will eventually become the biggest contributor in the non-life segment.

Furthermore, in the present scenario, the health insurance industry is dominated by four public sector entities (National, New India, Oriental, and United India) that together have 60 per cent market share. The rest of the share is with 17 private sector players, of which four are standalone health insurance players (Star Health, Apollo Munich, Max Bupa, and Religare Health). ICICI Lombard continued to be the largest private sector non-life insurance company, with market share of 9.74 per cent.

Standalone health insurers have got a boost by the move taken by Insurance Regulatory and Development Authority (IRDA) in early 2013. Bandyopadhyay averred, Few months back, IRDA has classified health insurance as a separate category and has permitted the insurers to tie-up with banks. All the four exclusive health insurance companies will be tying with the banks across the country and that will help them to move to the next level. The penetration of health insurance is now expected to increase with banks pushing for it through bancassurance tie-up.


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Hawaii Car Donation Information to Donate Car in Hawaii #used #car #boat #truck #donation,

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Hawaii Car Donation Information

It’s easy to donate your car, truck, boat or RV in Hawaii. We provide fast, free pickup of your vehicle with no cost to you and you are eligible to receive a tax deduction for your vehicle donation.

Where do you pick up car donations in Hawaii?
We pick up car donations throughout the state of Hawaii, including Ewa Beach, Kaaawa, Hilo, Wahiawa, Honolulu, Kauai, Maui, Pearl City, Kahului, and Wahiawa.

Is my car donation made in Hawaii tax deductible?
Vehicles donated on this site will benefit a nonprofit classified with the IRS as a 501(c)(3) charitable organization and are tax deductible.

What paperwork do I need to donate my vehicle in Hawaii?
In most cases we need the title to the vehicle. But, if you do not have title papers please check with the Hawaii Motor Vehicle Department to determine whether you can donate your vehicle without the title. Please visit the Hawaii Motor Vehicle Department web site to obtain the necessary forms before donating.

How do I release the liability of my donated vehicle in Hawaii?
For information on how to release the liability of your donated vehicle, please refer to the Hawaii Motor Vehicle web site.

If you still have questions
call toll-free 1-888-573-7033


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Organization & Management #sba #loan


#sba business plan

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Organization and Management follows the Market Analysis . This section should include: your company’s organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors.

Who does what in your business? What is their background and why are you bringing them into the business as board members or employees? What are they responsible for? These may seem like unnecessary questions to answer in a one- or two-person organization, but the people reading your business plan want to know who’s in charge, so tell them. Give a detailed description of each division or department and its function.

This section should include who’s on the board (if you have an advisory board) and how you intend to keep them there. What kind of salary and benefits package do you have for your people? What incentives are you offering? How about promotions? Reassure your reader that the people you have on staff are more than just names on a letterhead.

A simple but effective way to lay out the structure of your company is to create an organizational chart with a narrative description. This will prove that you’re leaving nothing to chance, you’ve thought out exactly who is doing what, and there is someone in charge of every function of your company. Nothing will fall through the cracks, and nothing will be done three or four times over. To a potential investor or employee, that is very important.

This section should also include the legal structure of your business along with the subsequent ownership information it relates to. Have you incorporated your business? If so, is it a C or S corporation? Or perhaps you have formed a partnership with someone. If so, is it a general or limited partnership? Or maybe you are a sole proprietor.

The following important ownership information should be incorporated into your business plan:

  • Names of owners
  • Percentage ownership
  • Extent of involvement with the company
  • Forms of ownership (i.e. common stock, preferred stock, general partner, limited partner)
  • Outstanding equity equivalents (i.e. options, warrants, convertible debt)
  • Common stock (i.e. authorized or issued)
  • Management Profiles
  • Experts agree that one of the strongest factors for success in any growth company is the ability and track record of its owner/management team, so let your reader know about the key people in your company and their backgrounds. Provide resumes that include the following information:
  • Name
  • Position (include brief position description along with primary duties)
  • Primary responsibilities and authority
  • Education
  • Unique experience and skills
  • Prior employment
  • Special skills
  • Past track record
  • Industry recognition
  • Community involvement
  • Number of years with company
  • Compensation basis and levels (make sure these are reasonable — not too high or too low)
  • Be sure you quantify achievements (e.g. “Managed a sales force of ten people,” “Managed a department of fifteen people,” “Increased revenue by 15 percent in the first six months,” “Expanded the retail outlets at the rate of two each year,” “Improved the customer service as rated by our customers from a 60 percent to a 90 percent rating”)

Also highlight how the people surrounding you complement your own skills. If you’re just starting out, show how each person’s unique experience will contribute to the success of your venture.

Board of Directors’ Qualifications

The major benefit of an unpaid advisory board is that it can provide expertise that your company cannot otherwise afford. A list of well-known, successful business owners/managers can go a long way toward enhancing your company’s credibility and perception of management expertise.

If you have a board of directors, be sure to gather the following information when developing the outline for your business plan:

  • Names
  • Positions on the board
  • Extent of involvement with company
  • Background
  • Historical and future contribution to the company’s success

Next, move on to the Service or Product Line section of your plan.


Tags :

History and Mission #game #theory, #think #tank, #government, #independent, #private, #nonprofit, #organization, #research, #development,

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History and Mission

Our Mission and Values

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis.

For more than six decades, RAND has used rigorous, fact-based research and analysis to help individuals, families, and communities throughout the world be safer and more secure, healthier and more prosperous. Our research spans the issues that matter most, such as energy, education, health, justice, the environment, and international and military affairs.

As a nonpartisan organization, RAND is widely respected for operating independent of political and commercial pressures. Quality and objectivity are our two core values.

RAND’s research is commissioned by a global clientele that includes government agencies, foundations, and private-sector firms. Philanthropic contributions, combined with earnings from RAND’s endowment and operations, make possible the RAND-Initiated Research program, which supports innovative research on issues that are crucial to the policy debate but that reach beyond the boundaries of traditional client funding.

Our Commitment to Dissemination and Education

RAND disseminates its research findings as widely as possible to benefit the public good. More than 20,000 RAND publications and commentary are available for free at www.rand.org.

RAND also operates the Pardee RAND Graduate School, the largest public policy analysis Ph.D. program in the United States and the only program based at an independent public policy research organization.

Our History

On May 14, 1948, Project RAND an organization formed immediately after World War II to connect military planning with research and development decisions separated from the Douglas Aircraft Company of Santa Monica, California, and became an independent, nonprofit organization. Adopting its name from a contraction of the term research and development. the newly formed entity was dedicated to furthering and promoting scientific, educational, and charitable purposes for the public welfare and security of the United States.

How RAND Invented the Postwar World

Almost all of the defining features of the Information Age were shaped in part at the RAND Corporation.

Researching RAND: Access to the Corporate Archives

RAND has a proud tradition of making its research and analyses widely available to the public. More than 20,000 RAND publications are already accessible at no cost on our external website. The publications provide a rich resource for scholars and others interested in learning and writing about RAND’s contributions to public policy.

Many more materials relevant to our mission, research, and history, and the work of current and former members of the RAND staff, are contained in the RAND archives. Research scholars and qualified journalists who are interested in learning more about RAND’s archives can request access.

The Nobel Prize and RAND

RAND’s unique intellectual environment and reputation for empirical, nonpartisan, independent analysis have attracted an impressive corps of researchers over the years. Many Nobel Laureates have been affiliated with RAND. Some have been employees, others served as consultants, while others served in an advisory capacity.

More About RAND


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Welcome to the Houston Metropolitan Paralegal Association #houston #metropolitan #paralegal #association, #paralegal, #organization, #association,

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Houston Metropolitan Paralegal Association

Welcome to Houston Metropolitan Paralegal Association ( HMPA )! HMPA, a non-profit organization, is one of the largest paralegal associations in the United States. Founded on August 30, 1978, the HMPA formally changed its name in 2004 from Houston Legal Assistants Association. HMPA’s goal, then and now, is to promote the professional advancement of paralegals in the Houston metropolitan area. As a non-partisan, non-bargaining association, HMPA strives for a heightened standard of excellence in the profession through the implementation of minimum education standards for its members, and the creation of the advanced Professional Houston Paralegal designation. Although HMPA is not a regulatory board, our goal is to remain on the forefront of regulation, certificate and licensure issues facing the profession during the coming years.

HMPA NEWS

Be the Vision! Visualize. Imagine. Believe. Be .

Membership renewals and applications are completely online for your convenience! Just click the Membership Tab above and your paperless experience is only a few clicks away!

Congratulations to Virginia Barry, winner of the HMPA Membership Grand Prize Package including an Echo Dot, Amazon Firestick and $150 Amazon Gift Card!

Secure your spot today for HMPA’s next downtown CLE luncheon and earn 1.0 hour of CLE credit! Always great food, amazing speakers, and an excellent networking opportunity! Space is limited, so don’t miss out!

HMPA Member Appreciation Night

Open to all HMPA members (plus one)! Please come out and enjoy food, drinks, and piano fun with your HMPA family!

HMPA 2017 TAPS Scholarship

In honor of Holly Huckabee (who tragically lost her life in the July 30, 2016 Hot Air Balloon accident in Texas), HMPA awarded the 2017 HMPA Scholarship to TAPS in Holly’s name.

As a member of HMPA and the Paralegal Division of the State Bar of Texas, Holly was the very definition of a committed, unifying leader. She was a passionate advocate for pro bono and community service initiatives and always, always stood for the professional advancement of the paralegal profession. As District 1 Director of the Paralegal Division, she gave tirelessly of herself to insure that all paralegals received the educational, networking and professional resources they needed.

Michelle Hendrickson submitted her 2017 HMPA Scholarship to TAPS application and two page essay on Why is CLE important to paralegals, even when certification or membership doesn t depend on it? Michelle is the winner of the 2017 HMPA Scholarship to TAPS, which includes the TAPS three-day registration, socials and part of the hotel expenses to attend the TAPS 2017 seminarTAPS Unmasqued: The Mystery Awaits (up to $750). Congratulation, Michelle!

HMPA’S 3RD ANNUAL SOCIAL BENEFITTING RPM

HMPA is proud to announce yet another successful social fundraiser supporting Houston’s very own Rescued Pets Movement. A big thank you to everyone who came out and joined us for food, fun, drinks, and prizes. With your help, HMPA was able to donate $900.00 to RPM! Stay tuned for our next social event, you won’t want to miss it!

Exclusively sponsored by: Rimkus Consulting

HMPA – CLE Luncheon Spotlight Sponsor

Special thanks to our Spotlight Sponsor for the August CLE Luncheon:

Robert Half quickly finds skilled candidates who are the best match for all your hiring needs by combining cutting-edge recruiting technology and matching algorithms, best-in-class customer service, and seven decades of experience. For more information, visit their website here.

Houston Metropolitan Paralegal Association
P.O. Box 61363, Houston, TX 77208-1363

HMPA’s office hours are;
Monday – Friday: 1:00 p.m. to 5:00 p.m.

COMMITTED TO THE
EXCELLENCE AND EDUCATION

OF PARALEGALS SINCE 1978


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Organization & Management #harvard #business


#sba business plan

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Organization and Management follows the Market Analysis . This section should include: your company’s organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors.

Who does what in your business? What is their background and why are you bringing them into the business as board members or employees? What are they responsible for? These may seem like unnecessary questions to answer in a one- or two-person organization, but the people reading your business plan want to know who’s in charge, so tell them. Give a detailed description of each division or department and its function.

This section should include who’s on the board (if you have an advisory board) and how you intend to keep them there. What kind of salary and benefits package do you have for your people? What incentives are you offering? How about promotions? Reassure your reader that the people you have on staff are more than just names on a letterhead.

A simple but effective way to lay out the structure of your company is to create an organizational chart with a narrative description. This will prove that you’re leaving nothing to chance, you’ve thought out exactly who is doing what, and there is someone in charge of every function of your company. Nothing will fall through the cracks, and nothing will be done three or four times over. To a potential investor or employee, that is very important.

This section should also include the legal structure of your business along with the subsequent ownership information it relates to. Have you incorporated your business? If so, is it a C or S corporation? Or perhaps you have formed a partnership with someone. If so, is it a general or limited partnership? Or maybe you are a sole proprietor.

The following important ownership information should be incorporated into your business plan:

  • Names of owners
  • Percentage ownership
  • Extent of involvement with the company
  • Forms of ownership (i.e. common stock, preferred stock, general partner, limited partner)
  • Outstanding equity equivalents (i.e. options, warrants, convertible debt)
  • Common stock (i.e. authorized or issued)
  • Management Profiles
  • Experts agree that one of the strongest factors for success in any growth company is the ability and track record of its owner/management team, so let your reader know about the key people in your company and their backgrounds. Provide resumes that include the following information:
  • Name
  • Position (include brief position description along with primary duties)
  • Primary responsibilities and authority
  • Education
  • Unique experience and skills
  • Prior employment
  • Special skills
  • Past track record
  • Industry recognition
  • Community involvement
  • Number of years with company
  • Compensation basis and levels (make sure these are reasonable — not too high or too low)
  • Be sure you quantify achievements (e.g. “Managed a sales force of ten people,” “Managed a department of fifteen people,” “Increased revenue by 15 percent in the first six months,” “Expanded the retail outlets at the rate of two each year,” “Improved the customer service as rated by our customers from a 60 percent to a 90 percent rating”)

Also highlight how the people surrounding you complement your own skills. If you’re just starting out, show how each person’s unique experience will contribute to the success of your venture.

Board of Directors’ Qualifications

The major benefit of an unpaid advisory board is that it can provide expertise that your company cannot otherwise afford. A list of well-known, successful business owners/managers can go a long way toward enhancing your company’s credibility and perception of management expertise.

If you have a board of directors, be sure to gather the following information when developing the outline for your business plan:

  • Names
  • Positions on the board
  • Extent of involvement with company
  • Background
  • Historical and future contribution to the company’s success

Next, move on to the Service or Product Line section of your plan.


Tags :

StudyFinance: Types of Business Organization #free #business #templates


#types of business

#

Types of Business Organization

It is important that the business owner seriously considers the different forms of business organization types such as sole proprietorship, partnership, and corporation. Which organizational form is most appropriate can be influenced by tax issues, legal issues, financial concerns, and personal concerns. For the purpose of this overview, basic information is presented to establish a general impression of business organization.

Sole Proprietorship

A Sole Proprietorship consists of one individual doing business. Sole Proprietorships are the most numerous form of business organization in the United States, however they account for little in the way of aggregate business receipts.

  • Ease of formation and dissolution. Establishing a sole proprietorship can be as simple as printing up business cards or hanging a sign announcing the business. Taking work as a contract carpenter or freelance photographer, for example, can establish a sole proprietorship. Likewise, a sole proprietorship is equally easy to dissolve.
  • Typically, there are low start-up costs and low operational overhead.
  • Ownership of all profits.
  • Sole Proprietorships are typically subject to fewer regulations.
  • No corporate income taxes. Any income realized by a sole proprietorship is declared on the owner s individual income tax return.
  • Unlimited liability. Owners who organize their business as a sole proprietorship are personally responsible for the obligations of the business, including actions of any employee representing the business.
  • Limited life. In most cases, if a business owner dies, the business dies as well.
  • It may be difficult for an individual to raise capital. It s common for funding to be in the form of personal savings or personal loans.

The most daunting disadvantage of organizing as a sole proprietorship is the aspect of unlimited liability. An advantage of a sole proprietorship is filing taxes as an individual rather than paying corporate tax rates. Some hybrid forms of business organization may be employed to take advantage of limited liability and lower tax rates for those businesses that meet the requirements. These include S Corporations, and Limited Liability Companies (LLC s). Where S-Corps are a Federal Entity, LLC s are regulated by the various states. LLC s give the option for profits from the business to pass through to the owner s individual income tax return.

Partnership

A Partnership consists of two or more individuals in business together. Partnerships may be as small as mom and pop type operations, or as large as some of the big legal or accounting firms that may have dozens of partners. There are different types of partnerships general partnership, limited partnership, and limited liability partnership the basic differences stemming around the degree of personal liability and management control.

  • Synergy. There is clear potential for the enhancement of value resulting from two or more individuals combining strengths.
  • Partnerships are relatively easy to form, however, considerable thought should be put into developing a partnership agreement at the point of formation.
  • Partnerships may be subject to fewer regulations than corporations.
  • There is stronger potential of access to greater amounts of capital.
  • No corporate income taxes. Partnerships declare income by filing a partnership income tax return. Yet the partnership pays no taxes when this partnership tax return is filed. Rather, the individual partners declare their pro-rata share of the net income of the partnership on their individual income tax returns and pay taxes at the individual income tax rate.
  • Unlimited liability. General partners are individually responsible for the obligations of the business, creating personal risk.
  • Limited life. A partnership may end upon the withdrawal or death of a partner.
  • There is a real possibility of disputes or conflicts between partners which could lead to dissolving the partnership. This scenario enforces the need of a partnership agreement.

As pointed out, unlimited liability exists for partnerships just as for sole proprietorships. One way to alleviate this risk is through Limited Liability Partnerships (LLP s). As with LLC s, LLP s may offer some tax advantages while providing some risk protection for owners.

Corporation

Corporations are probably the dominant form of business organization in the United States. Although fewer in number, corporations account for the lion s share of aggregate business receipts in the U.S. economy. A corporation is a legal entity doing business, and is distinct from the individuals within the entity. Public corporations are owned by shareholders who elect a board of directors to oversee primary responsibilities. Along with standard, for-profit corporations, there are charitable, not-for-profit corporations.

  • Unlimited commercial life. The corporation is an entity of its own and does not dissolve when ownership changes.
  • Greater flexibility in raising capital through the sale of stock.
  • Ease of transferring ownership by selling stock.
  • Limited liability. This limited liability is probably the biggest advantage to organizing as a corporation. Individual owners in corporations have limits on their personal liability. Even if a corporation is sued for billions of dollars, individual shareholder s liability is generally limited to the value of their own stock in the corporation.
  • Regulatory restrictions. Corporations are typically more closely monitored by governmental agencies, including federal, state, and local. Complying with regulations can be costly.
  • Higher organizational and operational costs. Corporations have to file articles of incorporation with the appropriate state authorities. These legal and clerical expenses, along with other recurring operational expenses, can contribute to budgetary challenges.
  • Double taxation. The possibility of double taxation arises when companies declare and pay taxes on the net income of the corporation, which they pay through their corporate income tax returns. If the corporation also pays out dividends to individual shareholders, those shareholders must declare that dividend income as personal income and pay taxes at the individual income tax rates. Thus, the possibility of double taxation.

This overview was developed by Dr. Sharon Garrison.
No adaptation of its content is permitted without permission.


Tags : , , , ,

Organization & Management #good #small #business #ideas


#sba business plan

#

Organization and Management follows the Market Analysis . This section should include: your company’s organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors.

Who does what in your business? What is their background and why are you bringing them into the business as board members or employees? What are they responsible for? These may seem like unnecessary questions to answer in a one- or two-person organization, but the people reading your business plan want to know who’s in charge, so tell them. Give a detailed description of each division or department and its function.

This section should include who’s on the board (if you have an advisory board) and how you intend to keep them there. What kind of salary and benefits package do you have for your people? What incentives are you offering? How about promotions? Reassure your reader that the people you have on staff are more than just names on a letterhead.

A simple but effective way to lay out the structure of your company is to create an organizational chart with a narrative description. This will prove that you’re leaving nothing to chance, you’ve thought out exactly who is doing what, and there is someone in charge of every function of your company. Nothing will fall through the cracks, and nothing will be done three or four times over. To a potential investor or employee, that is very important.

This section should also include the legal structure of your business along with the subsequent ownership information it relates to. Have you incorporated your business? If so, is it a C or S corporation? Or perhaps you have formed a partnership with someone. If so, is it a general or limited partnership? Or maybe you are a sole proprietor.

The following important ownership information should be incorporated into your business plan:

  • Names of owners
  • Percentage ownership
  • Extent of involvement with the company
  • Forms of ownership (i.e. common stock, preferred stock, general partner, limited partner)
  • Outstanding equity equivalents (i.e. options, warrants, convertible debt)
  • Common stock (i.e. authorized or issued)
  • Management Profiles
  • Experts agree that one of the strongest factors for success in any growth company is the ability and track record of its owner/management team, so let your reader know about the key people in your company and their backgrounds. Provide resumes that include the following information:
  • Name
  • Position (include brief position description along with primary duties)
  • Primary responsibilities and authority
  • Education
  • Unique experience and skills
  • Prior employment
  • Special skills
  • Past track record
  • Industry recognition
  • Community involvement
  • Number of years with company
  • Compensation basis and levels (make sure these are reasonable — not too high or too low)
  • Be sure you quantify achievements (e.g. “Managed a sales force of ten people,” “Managed a department of fifteen people,” “Increased revenue by 15 percent in the first six months,” “Expanded the retail outlets at the rate of two each year,” “Improved the customer service as rated by our customers from a 60 percent to a 90 percent rating”)

Also highlight how the people surrounding you complement your own skills. If you’re just starting out, show how each person’s unique experience will contribute to the success of your venture.

Board of Directors’ Qualifications

The major benefit of an unpaid advisory board is that it can provide expertise that your company cannot otherwise afford. A list of well-known, successful business owners/managers can go a long way toward enhancing your company’s credibility and perception of management expertise.

If you have a board of directors, be sure to gather the following information when developing the outline for your business plan:

  • Names
  • Positions on the board
  • Extent of involvement with company
  • Background
  • Historical and future contribution to the company’s success

Next, move on to the Service or Product Line section of your plan.


Tags :

StudyFinance: Types of Business Organization #business #careers


#types of business

#

Types of Business Organization

It is important that the business owner seriously considers the different forms of business organization types such as sole proprietorship, partnership, and corporation. Which organizational form is most appropriate can be influenced by tax issues, legal issues, financial concerns, and personal concerns. For the purpose of this overview, basic information is presented to establish a general impression of business organization.

Sole Proprietorship

A Sole Proprietorship consists of one individual doing business. Sole Proprietorships are the most numerous form of business organization in the United States, however they account for little in the way of aggregate business receipts.

  • Ease of formation and dissolution. Establishing a sole proprietorship can be as simple as printing up business cards or hanging a sign announcing the business. Taking work as a contract carpenter or freelance photographer, for example, can establish a sole proprietorship. Likewise, a sole proprietorship is equally easy to dissolve.
  • Typically, there are low start-up costs and low operational overhead.
  • Ownership of all profits.
  • Sole Proprietorships are typically subject to fewer regulations.
  • No corporate income taxes. Any income realized by a sole proprietorship is declared on the owner s individual income tax return.
  • Unlimited liability. Owners who organize their business as a sole proprietorship are personally responsible for the obligations of the business, including actions of any employee representing the business.
  • Limited life. In most cases, if a business owner dies, the business dies as well.
  • It may be difficult for an individual to raise capital. It s common for funding to be in the form of personal savings or personal loans.

The most daunting disadvantage of organizing as a sole proprietorship is the aspect of unlimited liability. An advantage of a sole proprietorship is filing taxes as an individual rather than paying corporate tax rates. Some hybrid forms of business organization may be employed to take advantage of limited liability and lower tax rates for those businesses that meet the requirements. These include S Corporations, and Limited Liability Companies (LLC s). Where S-Corps are a Federal Entity, LLC s are regulated by the various states. LLC s give the option for profits from the business to pass through to the owner s individual income tax return.

Partnership

A Partnership consists of two or more individuals in business together. Partnerships may be as small as mom and pop type operations, or as large as some of the big legal or accounting firms that may have dozens of partners. There are different types of partnerships general partnership, limited partnership, and limited liability partnership the basic differences stemming around the degree of personal liability and management control.

  • Synergy. There is clear potential for the enhancement of value resulting from two or more individuals combining strengths.
  • Partnerships are relatively easy to form, however, considerable thought should be put into developing a partnership agreement at the point of formation.
  • Partnerships may be subject to fewer regulations than corporations.
  • There is stronger potential of access to greater amounts of capital.
  • No corporate income taxes. Partnerships declare income by filing a partnership income tax return. Yet the partnership pays no taxes when this partnership tax return is filed. Rather, the individual partners declare their pro-rata share of the net income of the partnership on their individual income tax returns and pay taxes at the individual income tax rate.
  • Unlimited liability. General partners are individually responsible for the obligations of the business, creating personal risk.
  • Limited life. A partnership may end upon the withdrawal or death of a partner.
  • There is a real possibility of disputes or conflicts between partners which could lead to dissolving the partnership. This scenario enforces the need of a partnership agreement.

As pointed out, unlimited liability exists for partnerships just as for sole proprietorships. One way to alleviate this risk is through Limited Liability Partnerships (LLP s). As with LLC s, LLP s may offer some tax advantages while providing some risk protection for owners.

Corporation

Corporations are probably the dominant form of business organization in the United States. Although fewer in number, corporations account for the lion s share of aggregate business receipts in the U.S. economy. A corporation is a legal entity doing business, and is distinct from the individuals within the entity. Public corporations are owned by shareholders who elect a board of directors to oversee primary responsibilities. Along with standard, for-profit corporations, there are charitable, not-for-profit corporations.

  • Unlimited commercial life. The corporation is an entity of its own and does not dissolve when ownership changes.
  • Greater flexibility in raising capital through the sale of stock.
  • Ease of transferring ownership by selling stock.
  • Limited liability. This limited liability is probably the biggest advantage to organizing as a corporation. Individual owners in corporations have limits on their personal liability. Even if a corporation is sued for billions of dollars, individual shareholder s liability is generally limited to the value of their own stock in the corporation.
  • Regulatory restrictions. Corporations are typically more closely monitored by governmental agencies, including federal, state, and local. Complying with regulations can be costly.
  • Higher organizational and operational costs. Corporations have to file articles of incorporation with the appropriate state authorities. These legal and clerical expenses, along with other recurring operational expenses, can contribute to budgetary challenges.
  • Double taxation. The possibility of double taxation arises when companies declare and pay taxes on the net income of the corporation, which they pay through their corporate income tax returns. If the corporation also pays out dividends to individual shareholders, those shareholders must declare that dividend income as personal income and pay taxes at the individual income tax rates. Thus, the possibility of double taxation.

This overview was developed by Dr. Sharon Garrison.
No adaptation of its content is permitted without permission.


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StudyFinance: Types of Business Organization #government #business #loans


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Types of Business Organization

It is important that the business owner seriously considers the different forms of business organization types such as sole proprietorship, partnership, and corporation. Which organizational form is most appropriate can be influenced by tax issues, legal issues, financial concerns, and personal concerns. For the purpose of this overview, basic information is presented to establish a general impression of business organization.

Sole Proprietorship

A Sole Proprietorship consists of one individual doing business. Sole Proprietorships are the most numerous form of business organization in the United States, however they account for little in the way of aggregate business receipts.

  • Ease of formation and dissolution. Establishing a sole proprietorship can be as simple as printing up business cards or hanging a sign announcing the business. Taking work as a contract carpenter or freelance photographer, for example, can establish a sole proprietorship. Likewise, a sole proprietorship is equally easy to dissolve.
  • Typically, there are low start-up costs and low operational overhead.
  • Ownership of all profits.
  • Sole Proprietorships are typically subject to fewer regulations.
  • No corporate income taxes. Any income realized by a sole proprietorship is declared on the owner s individual income tax return.
  • Unlimited liability. Owners who organize their business as a sole proprietorship are personally responsible for the obligations of the business, including actions of any employee representing the business.
  • Limited life. In most cases, if a business owner dies, the business dies as well.
  • It may be difficult for an individual to raise capital. It s common for funding to be in the form of personal savings or personal loans.

The most daunting disadvantage of organizing as a sole proprietorship is the aspect of unlimited liability. An advantage of a sole proprietorship is filing taxes as an individual rather than paying corporate tax rates. Some hybrid forms of business organization may be employed to take advantage of limited liability and lower tax rates for those businesses that meet the requirements. These include S Corporations, and Limited Liability Companies (LLC s). Where S-Corps are a Federal Entity, LLC s are regulated by the various states. LLC s give the option for profits from the business to pass through to the owner s individual income tax return.

Partnership

A Partnership consists of two or more individuals in business together. Partnerships may be as small as mom and pop type operations, or as large as some of the big legal or accounting firms that may have dozens of partners. There are different types of partnerships general partnership, limited partnership, and limited liability partnership the basic differences stemming around the degree of personal liability and management control.

  • Synergy. There is clear potential for the enhancement of value resulting from two or more individuals combining strengths.
  • Partnerships are relatively easy to form, however, considerable thought should be put into developing a partnership agreement at the point of formation.
  • Partnerships may be subject to fewer regulations than corporations.
  • There is stronger potential of access to greater amounts of capital.
  • No corporate income taxes. Partnerships declare income by filing a partnership income tax return. Yet the partnership pays no taxes when this partnership tax return is filed. Rather, the individual partners declare their pro-rata share of the net income of the partnership on their individual income tax returns and pay taxes at the individual income tax rate.
  • Unlimited liability. General partners are individually responsible for the obligations of the business, creating personal risk.
  • Limited life. A partnership may end upon the withdrawal or death of a partner.
  • There is a real possibility of disputes or conflicts between partners which could lead to dissolving the partnership. This scenario enforces the need of a partnership agreement.

As pointed out, unlimited liability exists for partnerships just as for sole proprietorships. One way to alleviate this risk is through Limited Liability Partnerships (LLP s). As with LLC s, LLP s may offer some tax advantages while providing some risk protection for owners.

Corporation

Corporations are probably the dominant form of business organization in the United States. Although fewer in number, corporations account for the lion s share of aggregate business receipts in the U.S. economy. A corporation is a legal entity doing business, and is distinct from the individuals within the entity. Public corporations are owned by shareholders who elect a board of directors to oversee primary responsibilities. Along with standard, for-profit corporations, there are charitable, not-for-profit corporations.

  • Unlimited commercial life. The corporation is an entity of its own and does not dissolve when ownership changes.
  • Greater flexibility in raising capital through the sale of stock.
  • Ease of transferring ownership by selling stock.
  • Limited liability. This limited liability is probably the biggest advantage to organizing as a corporation. Individual owners in corporations have limits on their personal liability. Even if a corporation is sued for billions of dollars, individual shareholder s liability is generally limited to the value of their own stock in the corporation.
  • Regulatory restrictions. Corporations are typically more closely monitored by governmental agencies, including federal, state, and local. Complying with regulations can be costly.
  • Higher organizational and operational costs. Corporations have to file articles of incorporation with the appropriate state authorities. These legal and clerical expenses, along with other recurring operational expenses, can contribute to budgetary challenges.
  • Double taxation. The possibility of double taxation arises when companies declare and pay taxes on the net income of the corporation, which they pay through their corporate income tax returns. If the corporation also pays out dividends to individual shareholders, those shareholders must declare that dividend income as personal income and pay taxes at the individual income tax rates. Thus, the possibility of double taxation.

This overview was developed by Dr. Sharon Garrison.
No adaptation of its content is permitted without permission.


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