Business Partnership Pros and Cons
Business liability insurance is an integral part of the general insurance that provides overall protection to a business firm or corporation. Liability insurance is designed to offer complete protection against any third party claims. However, claims arising out of the intentional and contractual liability are not covered under liability policies.
Public Liability Insurance:
Many a times, companies face unpleasant situations that may force them to pay a heavy compensation to the third party. In many states, it is mandatory to take both employer’s liability insurance and public liability insurance before starting a business operation. Regardless of the compulsory law, many companies do realize the need for adequate insurance protection for uninterrupted day-to-day business operations. Apart from the combined conditions, exclusions, and warranties, many business houses trust including public liability in their policy offer. Public liability is essential insurance coverage for companies that have greater risk of public liability like shopping centers, pubs, clubs, markets, sporting clubs, hotels, entertainment centres and such others. So, if you are one of them, taking a suitable public liability policy is must.
Online Insurance Agencies:
Are you looking for the adequate business liability insurance policy? There are many websites that offer quality business insurance in affordable premium range. Businesses looking for useful consultancy on insurance can get a lot from going online. Many websites provide expert opinion for companies to help them to choose the best coverage in minimum possible time.
Whatever option you choose to protect your company’s interest and work process, it is important to go through the mentioned terms and conditions very carefully. Most insured companies make this mistake and they have to suffer afterwards. Select the best and stay away from uncertain and unpleasant situations forever.
Watch the video related to business liability insurance
Video from our FREE Online Business Course www.myownbusiness.org Session 4 – Business Organization Question “Do you have any recommendations on how one should go about evaluating the pros and cons of taking on a partner?” John Powers Attorney-at-Law Topics covered in this video: Business organization, partnership, finding a business partner, limited liability Transcript: Partnership is a very popular form of operating entity. And I think what is most important is to think in terms of a …
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Posted by American Car Insurance on March 17th, 2010 filed in business insurance | 9 Comments »
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9 Responses to “Business Partnership Pros and Cons”
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Link Partner
March 17th, 2010 at 3:58 am
I'm not sure if you are asking a business structure question -setting up a corporation vs a partnership structure or if you're asking whether or not you should take the friend on as a partner or do it alone. In either case, if you plan on starting a business get the book Winning in Biz – the book and companion website http://www.wininbiz.com give you the step-by-step hand-holding of the things to do and how to do them right-the first time-to make your business successful and profitable. If you are looking for strategies that work, if you want an expert on your side take 10 minutes to review the info on the website.
March 17th, 2010 at 4:26 am
Definitely has advantages. Most importantly, if someone sued you for slipping on the sidewalk or down the stairs, they can only sue the company, and not touch any of your personal assets.
Personal asset protection is the #1 reason to incorporate. Doing an LLC has potential tax advantages over a proprietorship (which you effectively are by default if you haven't incorporated).
You're automatically a "sole proprietorship" by running a business by yourself. You can always register a fictitious business name (DBA, doing business as) with the state, but that has zero protective advantage. It's just a name.
Partnerships historically haven't offered as much protection, and had certain other limitations, so a limited liability corporation (LLC) or sub-type S Corporation is better. Both create the "corporate veil" you need to protect your home and personal finances from being lost due to the business' mistakes.
You can often quit claim the properties into the name of the LLC you create fairly easily. It's quite difficult to finance a property directly with the LLC until it's been running and profitable for a couple years, but you can always transfer the properties to the LLC after you buy them.
March 17th, 2010 at 4:33 am
March 17th, 2010 at 9:21 am
Make sure you both have equal amounts of risk (if only one of you is putting up money and the business fails, then the other has nothing to lose). So make sure you both put up the money to get started; split it or go in together on the loan. Make sure all terms are clearly written out BEFORE you do this however. What each partner's role will be in the business.
Get it ALL IN WRITING FIRST!!!!
And of course … Trust!
March 17th, 2010 at 9:15 pm
March 17th, 2010 at 11:42 pm
Philippines has the same forms of business structure as Malaysia: single proprietorship, partnership and corporation.
If single proprietorship, you simply need to register the business name with Department of Trade and Industry. DTI has a Business Name Registration System that you can do online http://www.bnrs.dti.gov.ph/bnrspub/
For partnership and corporation, you have to register with the Securities and Exchange Commission SEC http://www.sec.gov.ph . SEC now has a registration system online whereby a business owner can: http://www.sec.gov.ph/secireg.htm
- Verifying the availability of the desired name for corporation or partnership
- Reserving the verified name
- Accomplishing and printing the registration online without the need to buy the SEC forms
- Registering on-line of business organization
- Corporation, either stock or non-stock
- Partnership, either general or limited or professional
- Deposit the paid-up capital online
- Pay the appropriate registration fees online
- Receive notice of approval within the same day
As for the pros and cons of each business form, I suggest you check out this page which lists the tax rates of each business structure as well as the cost of business registration
http://www.gov.ph/faqs/business_gettingstarted.asp
March 18th, 2010 at 4:18 am
The idea of an investment club is to have a variety of points of view going into the decision process. Also, to have multiple people to review investments and present them to the club for discussion.
With only two members, it will be more difficult to find a good variety of investment options and also limited funds to work with. The power of investment clubs is having multiple people each contributing to the fund to make it so that a realistic amount of each investment can be purchased.
I agree with the first answer, what if you two strongly disagree on an investment you have opened for discussion, will one person insist on investing there and then will that create a situation where one or the other of you feel like you don't have a voice in the club?
March 18th, 2010 at 6:57 am
1. What type of business organization does your business fall under: sole proprietorship, partnership, corporation etc? S-corporation
2. What are some of your fixed and variable costs? Fixed is for office space ($500/month), Variable is phone, internet, etc.
3. How much does one need to start a business like this? Nothing
4. Where does one get financing to start a business? Depends upon how much you need. If less than $50,000 I suggest from a personal loan or from friends/relatives. Fromm $50000 to about $500000 I suggest an angel investor. More than that, a venture capitalist.
5. What type of education do you need to work in this business? Ideally a masters in business
6. How much do you make a year? My salary? Confidential, but much more than $100000
7. What problems do you run into? None that we haven't been able to solve.
8. Do you have any others workers, that you pay? One assistant and many sub-contractors
9. If so, what requirements do they need to work with you. Experience in the field
10. Does running a company take a lot of your free times. Is it worth it? What are the pro’s and con’s? What do you mean? Running a company takes about 100 hours per week.
March 20th, 2010 at 11:30 am
Depending on what type of business it is I've always been advised to be corporation.
Pro's for Corp. You are protected by the Corp Veil and if anything happens they go after your business and it's assets verses your personal assets. This also depends on how you back any loans that you receive for the company.
Sole I would never do because you CAN be attached personally for anything that goes wrong. Such as you can lose your house, car etc.
Partnership, well it's just that. I'm sure if you think of a "Partnership" you can come up 1000 CONS.
With each "type" of business there are different ways the government is going to tax you. But once again this depends on what type of business you have or want to start.