Scenario 1: Business Organizations
Steve and Shirley recently graduated from the University of Georgia School of Law. Steve has a special interest in contracts, while Shirley enjoys torts. The two friends want to start a general practice law firm together. They were best friends in law school and are confident in each others’ ability to practice law. Since they just graduated, neither owns a home or has any significant assets and they must start repaying student loans in six months. Together, they have $2,500 to invest in the business. Steve and Shirley have narrowed the types of business to an LLP, an LLC, a professional corporation or a general partnership.
Select two of the forms of business and compare the advantages and disadvantages of each. Of the two you select, what form would you recommend and why? Discuss the liability issues and tax implications of your choice.
Scenario 2 – Corporations and Criminal Liability
“Officers and directors, as well as the corporation itself, may be criminally accountable for business regulatory offenses” (Twomey & Jennings, 2014, p. 1091).
Locate a business that has been convicted of a criminal offense. The Department of Justice is a good place to start your research. Provide the following information.
Name of company
Illegal acts committed and criminal charges filed
Outcome, including fines and other punishments
Were any individuals charged and convicted? If so, please explain.
A professional corporation is well known based on the fact that it is permitted in many states. Despite this, the PC allows a licensed professional, in this case, the lawyers, to conduct their practice under the corporate form thus treated under federal and state tax rules similar to that of a corporation. However, the significant tax benefits of a corporation are substantial. Particularly, the corporations have the advantage of prized tax based on the capacity to establish a corporate retirement plan…..
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