Prepare a reply response for Derrick post.

Assignment Question

Prepare a reply response for Derrick post.

Reply to Derrick: General Partnership I would recommend a general partnership for this situation. The issue here is that Peter and Andrew are owners and Paul would be a partner. They need to have a separate agreement on what Paul’s stake in the company. They can decide to bring Paul in as a co-owner but he is not the property owner. This is partially a personal decision whether to bring him on as a co-owner or as a partner with a certain cut in the business. Monetary values of ownership would depend on time and responsibility. I have some experience with an LLC and partnership. I started a Junk Removal side business last year and I got an LLC for the business. Wea re called American Made Haulers. I have one partner and we decided to do the LLC with a partnership to keep things in order. We do not want business to ruin a relationship. We have an hourly rate and a volume rate. We have agreed upon a certain percentage of the profits go to the company and some go to the individual. We have it in writing, but it’s not notarized or a binding contract, so that leaves us susceptible to legal issues if something were to happen. All profits and losses in a general partnership are agreed upon prior to the start of the business. A general partnership is an arraignment in which two or more persons agree to share in all assets, profits, and liabilities of a business. This also differs per different states regulations. Each state has different documents required for a general partnership. I chose to get an LLC through Legal Zoom. I filed for the LLC, filled out forms, signed papers, and received the License within 16 days in the state of California. The LLC does protect me personally from damages to my personal finances and it puts the responsibility on the company. For example, if damage to property during a job happens, the business would be at fault and that could close the business but it would not fall on to my social security number. I would not be personally responsibility, it protects the business owner. General partnerships and relationships in general are all over scriipture. We are in a partnership with Jesus Christ. 1 Corinthians 1:9 says we are called into fellowship with Christ by God. When Jesus met Peter, James, and John on the water, that would be considered a fishing partnership. I’m sure, although there were no legal documents, but I am sure they had an agreement on the fish they catch, the price they sold it for to locals, and what the monetary income for each individual would be. References: Center, C. T. S. (n.d.). General partnerships. LLC vs. partnership. Legalzoom. (n.d.). Dow, D. (2017, April 19). What does the bible say about partnership?. Synergy Commons. The holy bible. (1992). . 1 Corinthians 1:9 Reply to Danette: LLC I would suggest that Peter and Andrew incorporate their hunting and fishing lodge business into an LLC. As stated by Melvin (2018), a limited liability corporation is “two or more principals in an ongoing business venture with potentially favorable tax treatment and limited liability for the principals”. Protection Against Personal Liability: An LLC’s primary benefit is that it protects its owners, often referred to as members, from personal liability. In a general partnership, you assume the business’s debts, obligations, risks personally, essentially meaning that if the business owns assets or owes money, so do the individuals in the partnership (Rayne, 2016). This implies that their personal assets might be in jeopardy in the event of a lawsuit or financial difficulties. An LLC, on the other hand, restricts members’ liability to the amount of the member’s investment in the business. This implies that in the case of any business-related problems, their private assets, such their homes and money, would often be safeguarded. Paul being a Co-Owner: Paul would be a reasonable co-owner of the LLC because he has experience in the hotel sector and could oversee day-to-day operations. However, I agree with Paul the Apostle in 2 Corinthians 6:14; I believe that Peter and Andrew ought to avoid doing business with someone whose moral values are not aligned with their own. Friending unbelievers is one way that we might share God’s light with those who do not know Him. Assessment of Contributions: Based on the value of their individual contributions to the company, each member’s proportion of ownership in the LLC may be determined. Financial investments, labor, assets, expertise, and experience are all acceptable forms of contributions to an LLC. To agree on the fair worth of these non-monetary contributions, the members may, nevertheless, bargain. To do this, you would have to rely on expert evaluations or consider market prices for comparable services. Distribution of Profits and Losses: Profits and losses of an LLC are allocated in accordance with the ownership percentages of the members, as specified in the LLC operating agreement. An essential document that lays out the policies and procedures for how the LLC will be run and decisions made is the operating agreement. Members may choose a model of profit and loss sharing based on their respective ownership percentages, or they may choose a model that reflects their respective contributions. In conclusion, the best course of action for Peter and Andrew would be to establish an LLC. In addition to meeting the needs of neighborhood church groups, it offers personal liability protection, permits flexibility in evaluating donations and allocating gains and losses. References Melvin, S. (2018) The Legal Environment of Business: A Managerial Approach: Theory to Practice. New York: McGraw-Hill Education Rayne, E. (2016, July 18). General Partnership vs. LLC.