Business Structures: Comparing Sole Proprietorship, Partnership, LLC, and Corporation, Exams of Nursing

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Running head: BUSINESS ORGANIZATION 1 Multimedia Activity: Business Organization Chelsea M. Reyes BUS 311 Business Law I Instructor: Anthony Patete November 24, 2019

Multimedia Activity: Business Organization If I were to start a business, I would start a Dental Insurance Breakdown and Verification Company. This company would go to the dental offices once or twice a week and ensure all insurances are verified, policy breakdowns are updated, the proper procedures are scheduled based on frequency, and any out of pocket cost is explained to the patient and family before the appointment. My company would be responsible for organizing the schedule and maintaining insurance verifications for up to two weeks ahead. In the event that the office has an emergency case or a case that is scheduled and expected to be execute before my company comes to the office, it is the office’s responsibility to hold themselves accountable for that insurance verification and breakdown. Sole Proprietorship: Since I would be both the owner and manager/operator of my company, it would be considered a sole proprietorship.

• Steps to form: As a sole proprietorship, there are no formalities or expenses attached with the starting of my company (Rogers, 2012, chap. 13). With my company, I would want to create a logo and slogan, and the rest would be the footwork that I would put in my going to every dental office in my area and providing one free day of my services so that the organizations could experience what it would be like to have a company come in and complete their most time-consuming tasks.
• Personal liability for owners:

• Personal liability for owners: The liability, obligation, and abilities of all partners of the organization are equal. This means, no matter the mistake or the person who did it, all partners are liable within the company. It is crucial to the development, maintenance, and success of an organization that all partners are equally responsible and liable.
• Taxation: Taxation for partnerships benefit owners by taxing individual earnings, rather than the organization (Rogers, 13.1).
• Advantages and disadvantages: An advantage of partnerships include practical help that improves efficiency. The taxed revenue is limited to individual income, rather than organizational income which gives the owners more profitability from organizational revenue. LLC:
• Steps to form: Limited Liability Companies are a mixture between all the benefits of partnerships and corporations, which allow LLCs to be a fine median between the two. The formalities and costs are increased based on those of partnerships and decreased based on corporate needs and standards.
• Personal liability for owners:

The secureness and limited liabilities of corporations are carried into LLC benefits, allowing owners to operate without the fear of their personal resources, becoming a liability of the organization.

• Taxation: The earnings of the individual owner are protected within an LLC, commonly known as a corporate benefits.
• Advantages and disadvantages: A disadvantage of an LLC is that the laws and regulations regarding these companies were not well thought out and lacked depth and detail. The advantages include all the corporate impacts on the organization that allow limited liabilities and protected personal resources. Corporation:
• Steps to form: A corporation is a legal entity that aligns its development and management with the state’s statutes and guidelines. Its abilities and resources must meet the standards and regulations of local, state, and national laws that control and maintain efficient and effective guidelines and strategies.
• Personal liability for owners: Corporations protect the personal assets of owners, while allowing them the same access to their revenue and profits. Corporation laws have to be abided by the corporation in order to maintain eligibility of limited liability. The owners are then protected from liabilities as long as they follow the expectations of corporate laws.

References Rogers, S. (2012). Essentials of Business Law [Electronic version]. Retrieved from https://content.ashford.edu/