MGMT-235 Chat Presentation: 7 and 8 Discussion Topics: The Phase 4 Discussion Board (PH 4 DB) AND The Phase 4 Individual Project (PH 4 IP) Professor Jennifer Hacker, J.D. * Due Sunday, June 14th.Worth 75 points.Prepare a detailed outline of your PHASE FOUR INDIVIDUAL PROJECT (not your “Key Assignment Draft”-ignore that phrase) for this week's discussion board. Your PH 4 IP is your BUSINESS PLAN. Your PH 4 DB is an outline of your BUSINESS Plan. You have not written this plan yet. You will do so in your PH 4 IP. Because this assignment relies on the one that follows it, we will start with the NEXT assignment, IP 4. * Due: Monday, June 15th. Worth 150 points.You can have two extra days to turn this in without penalty; by Wednesday, June 17th . THIS IS YOUR LAST EXTENSIONMinimum word count: 1100 words. Points will be taken off for not meeting the writing requirement; do not paste the scenario into your workYour title does not countYour references don’t countFollow APA formatting * ONE: Introduction of your proposed business. TWO: CHOOSE a BUSINESS FORM and then describe the advantages and disadvantages of the business form you will use. THREE: Description of the specific steps you will need to follow to successfully and legally start the business. * STEP ONE: Introduction of your proposed business. What business will you be in? STEP TWO:CHOOSE A BUSINESS FORM:Describe and explain the advantages and disadvantages of the business form you will use. You can ONLY choose from these forms: PartnershipCorporationLLC NOTE: You CANNOT decide to be a sole proprietor. If you do, your outline will be given a zero and you will have to revise. * THREE: Describe the specific steps you will need to follow to successfully and legally start the business. * Here, you will consider what you will sell or do in your business. This step is NOT about your business form. This step IS about what you will sell or do. * Propane and Propane Accessories? Nuclear Power? Toy Manufacturing? * The paper business? Restaurant management? * Describe and explain the advantages and disadvantages of the business form you will use. You can ONLY choose from these three business forms: PartnershipCorporationLLC Note: You cannot choose a sole proprietorship. If you do so, your work will get a zero grade and you will have to revise. * A partnership is a single business where two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business. ("Partnerships," 2013) * Because partnerships entail more than one person in the decision-making process, it’s important to discuss a wide variety of issues up front and develop a legal partnership agreement. This agreement should document how future business decisions will be made, including how the partners will divide profits, resolve ...

1. MGMT-235
Chat Presentation: 7 and 8
Discussion Topics:
The Phase 4 Discussion Board (PH 4 DB)
AND
The Phase 4 Individual Project (PH 4 IP)
Professor Jennifer Hacker, J.D.
*
Due Sunday, June 14th.Worth 75 points.Prepare a detailed
outline of your PHASE FOUR INDIVIDUAL PROJECT (not
your “Key Assignment Draft”-ignore that phrase) for this
week's discussion board.
Your PH 4 IP is your BUSINESS PLAN. Your PH 4 DB is an
outline of your BUSINESS Plan. You have not written this plan
yet. You will do so in your PH 4 IP.
Because this assignment relies on the one that follows it, we
will start with the NEXT assignment, IP 4.
*
Due: Monday, June 15th. Worth 150 points.You can have two
extra days to turn this in without penalty; by Wednesday, June
17th .
THIS IS YOUR LAST EXTENSIONMinimum word count: 1100
words.
Points will be taken off for not meeting the writing requirement;
do not paste the scenario into your workYour title does not

2. countYour references don’t countFollow APA formatting
*
ONE: Introduction of your proposed business.
TWO: CHOOSE a BUSINESS FORM and then describe the
advantages and disadvantages of the business form you will use.
THREE: Description of the specific steps you will need to
follow to successfully and legally start the business.
*
STEP ONE: Introduction of your proposed business. What
business will you be in?
STEP TWO:CHOOSE A BUSINESS FORM:Describe and
explain the advantages and disadvantages of the business form
you will use. You can ONLY choose from these forms:
PartnershipCorporationLLC
NOTE: You CANNOT decide to be a sole proprietor. If you do,
your outline will be given a zero and you will have to revise.
*
THREE: Describe the specific steps you will need to follow to
successfully and legally start the business.
*
Here, you will consider what you will sell or do in your
business.
This step is NOT about your business form.
This step IS about what you will sell or do.
*

3. Propane and Propane Accessories?
Nuclear Power?
Toy Manufacturing?
*
The paper business?
Restaurant management?
*
Describe and explain the advantages and disadvantages of the
business form you will use.
You can ONLY choose from these three business forms:
PartnershipCorporationLLC

4. Note: You cannot choose a sole proprietorship. If you do so,
your work will get a zero grade and you will have to revise.
*
A partnership is a single business where two or more people
share ownership.
Each partner contributes to all aspects of the business, including
money, property, labor or skill. In return, each partner shares in
the profits and losses of the business.
("Partnerships," 2013)
*
Because partnerships entail more than one person in the
decision-making process, it’s important to discuss a wide
variety of issues up front and develop a legal partnership
agreement.
This agreement should document how future business decisions
will be made, including how the partners will divide profits,
resolve disputes, change ownership (bring in new partners or
buy out current partners) and how to dissolve the partnership.

5. Although partnership agreements are not legally required, (but
are required in this assignment!) they are strongly recommended
and it is considered extremely risky to operate without one.
("Partnerships," 2013)
*
There are two general types of partnership arrangements:
General Partnerships assume that profits, liability and
management duties are divided equally among partners. If you
opt for an unequal distribution, the percentages assigned to each
partner must be documented in the partnership
agreement.General partners are not shielded from liability.
Limited Partnerships are more complex than general
partnerships. Limited partnerships allow partners to have
limited liability as well as limited input with management
decisions. These limits depend on the extent of each partner’s
investment percentage. Limited partnerships are attractive to
investors of short-term projects.Limited partners ARE shielded
from liability.
*
("Partnerships," 2013)
A general partnership is a business entity that is made up of two
or more persons or entities to carry on a trade or business.
In a general partnership, each partner contributes money,
property, labor, or special skills and each partner shares in the
profits and losses from the business.
In a general partnership all the partners are personally liable for
the partnership debts.
In a limited partnership, limited partners are not liable for the
partnership's debts beyond the funds they contribute to the
partnership.
A limited partner will normally have little knowledge or

6. participation in the activities of the partnership.
("General partnerships," 2013)
*
A limited partnership (or limited liability partnership) is formed
by two or more persons and they must have at least one limited
partner and one general partner.
Limited partners are only liable for the partnership's debts equal
to their investment in the partnership.
A limited partnership is similar to a general partnership except
that it has two classes of partners.
The general partner(s) have full management and control of the
partnership business but also accept full personal responsibility
for partnership liabilities.
Limited partners have no personal liability beyond their
investment in the partnership interest.
Limited partners cannot participate in the general management
and daily operations of the partnership business without being
considered general partners in the eyes of the law.
("Limited liability partnerships," 2013)
*
What sets the corporation apart from all other types of
businesses is that a corporation is an independent legal entity,
separate from the people who own, control, and manage it. In
other words, corporation and tax laws view the corporation as a
legal "person" that can enter into contracts, incur debts, and pay
taxes apart from its owners.
Other important characteristics also result from the
corporation's separate existence: A corporation does not
dissolve when its owners (shareholders) change or die, and the
owners of a corporation have limited liability -- that is, they are
not personally responsible for the corporation's debts. ("What is
a," 2012)

7. *
Most people have heard that forming a corporation provides
"limited liability" -- that is, it limits your personal liability for
business debts. What you may not know is that there's more to
creating and running a corporation than filing a few papers.
You'll need to keep good records to handle the more
complicated corporate tax return and, in order to retain your
limited liability, you must follow corporate formalities
involving decision making and record keeping. In short, you've
got to be organized.
Limited Personal Liability
One of the main advantages of incorporating is that the owners'
personal assets are protected from creditors of the corporation.
For instance, if a court judgment is entered against your
corporation saying that it owes a creditor $100,000, you can't be
forced to use personal assets, such as your house, to pay the
debt. Because only corporate assets need be used to pay
business debts, you stand to lose only the money that you've
invested in the corporation. ("What is a," 2012)
*
Exceptions to Limited Liability
There are some circumstances in which limited liability will not
protect an owner's personal assets. An owner of a corporation
can be held personally liable if he or she:personally and directly
injures someonepersonally guarantees a bank loan or a business
debt on which the corporation defaultsfails to deposit taxes
withheld from employees' wagesdoes something intentionally

8. fraudulent or illegal that causes harm to the company or to
someone else, ortreats the corporation as an extension of his or
her personal affairs, rather than as a separate legal entity.
This last exception is the most important. In some
circumstances, courts can rule that a corporation doesn't really
exist and that its owners should not be shielded from personal
liability for their acts. ("What is a," 2012)
*
The LLC is a hybrid entity and it brings together some of the
best features of partnerships and corporations. It is a great
choice for entrepreneurs who want to move beyond the sole
proprietorship or partnership.
Probably the single greatest disadvantage of the corporate form
is the burdensome range of formalities that corporate managers
must observe. A modern corporation's heavy administrative
burden is a remnant of the more traditional and formal legal
system under which corporate law was cultivated. The LLC
changed all that. (Meier, 2005)
*
Limited liability companies (LLCs) have been around since
1977, but their popularity among small-business owners is a
relatively recent phenomenon. The LLC offers the liability
protection benefits of the corporation without the corporation's
burdensome formalities. This simplicity has made the LLC an
instantly popular business form for smaller companies.

9. LLCs are the favorite choice for small businesses with one to
three owners working who don't plan to grow the business
significantly and don't expect to raise significant amounts of
cash. But as the number of owners grows, the corporation often
becomes a more attractive choice as a business form.
An LLC is a hybrid entity, bringing together some of the best
features of partnerships and corporations. LLCs were created to
provide business owners with the liability protection that
corporations enjoy without the double taxation. Earnings and
losses pass through to the owners and are included on their
personal tax returns. (Meier, 2005)
*
Sound similar to an S corporation? It is, except an LLC offers
small-business owners even more attractions than an S
corporation. For example, there is no limitation on the number
of shareholders an LLC can have, unlike an S corporation,
which has a limit of 75. In addition, any member or owner of
the LLC is allowed a full participatory role in the business's
operation; in a limited partnership, on the other hand, partners
are not permitted any say in the operation.Unlike corporations
(and like partnerships), LLCs do not have perpetual life. Some
state statutes stipulate that the company must dissolve after 30
or 40 years. Technically, the company dissolves when a member
dies, quits or retires. (Meier, 2005)
*
STEP THREE: Describe the specific steps you will need to
follow to successfully and legally start the business.
For this step, you will describe and explain each step it will
take to form your company.

10. Make sure you start by picking a STATE. You can choose your
own state or any other state, but it must be here in the United
States and not an internationally-based business.
After choosing a state, describe and explain the steps to legally
forming your business.
*
To form a partnership in California, you must register your
business with your state, a process generally done through your
Secretary of State’s office.
You’ll also need to establish your business name. For
partnerships, your legal name is the name given in your
partnership agreement or the last names of the partners. If you
choose to operate under a name different than the officially
registered name, you will most likely have to file a fictitious
name (also known as an assumed name, trade name, or DBA
name, short for "doing business as").
Once your business is registered, you must obtain business
licenses and permits. Regulations vary by industry, state and
locality. Use our Licensing & Permits tool to find a listing of
federal, state and local permits, licenses and registrations you'll
need to run a business. ("Partnerships," 2013)
*
To form your own corporation, you must take these essential
steps.
Choose an available business name that complies with your
state's corporation rules.Appoint the initial directors of your
corporation.File formal paperwork, usually called "articles of

11. incorporation," and pay a filing fee that ranges from $100 to
$800, depending on the state where you incorporate.Create
corporate "bylaws," which lay out the operating rules for your
corporation.Hold the first meeting of the board of
directors.Issue stock certificates to the initial owners
(shareholders) of the corporation.Obtain any licenses and
permits that are required for your business. (Laurence, 2012)
*
Forming an LLC (limited liability company) is not as hard as
most people think. Here are the steps you need to take to make
your LLC a legal reality.Choose an available business name that
complies with your state's LLC rulesFile formal paperwork,
usually called articles of organization, and pay the filing fee
(ranging from about $100 to $800, depending on your state's
rules).Create an LLC operating agreement, which sets out the
rights and responsibilities of the LLC members.Publish a notice
of your intent to form an LLC (required in only a few
states).Obtain licenses and permits that may be required for
your business. (Laurence, 2012)
*
In 1100 words or more:
ONE: What are you planning to do?
TWO: What business form will use?
THREE: The specific steps to legally start your business.
*
Draft an outline of your Business Plan. It can be just one page
long, or longer if you choose. What I have to see is that you

12. have organized your work this way:
Business
Name
What type of business? What will you sell or do?
Your choice of business form and the advantages and
disadvantages of the FORM you chose.
Choose a state
Choose a business form; Partnership, Corporation or LLC
Steps you must take.
Step 1
Step 2
You must add detail to this structure, but you can and should
follow this as a guide. If you do follow this and if you draft an
outline that contains the specifics of your company, you will
have an easy time with PH 4 DB, PH 4 IP, AND the PH 5 IP.
*
The Phase Four DB is due Sunday, June 14th Your first post can
be a rough outline but must be made by Wednesday, June
10th.NO references required with your Discussion BoardYou
must respond to at least ONE other student.
--------------------------------------------------------------The Phase
Four IP is due Monday, June 15thYou have an extension until
Wednesday, June 17th but that is your last
extensionREFERENCES ARE REQUIRED with your IP.Your
Phase FIVE IP will build on your PH 4 IP so the better you do,
the less you’ll have to do in PH 5.
*
Partnerships. (2013, January 15). Retrieved from

13. http://www.sba.gov/content/partnership General partnerships.
(2013, January 10). Retrieved from
http://www.taxes.ca.gov/Income_Tax/genpartbus.shtml Limited
liability partnerships. (2013, January 10). Retrieved from
http://www.entrepreneur.com/encyclopedia/limited-liability-
partnershipLimited liability limited partnership. (2013, January
5). Retrieved from
https://www.ftb.ca.gov/businesses/bus_structures/LLLpartner.sh
tml What is a corporation?. (2012, November 12). Retrieved
from http://www.nolo.com/legal-encyclopedia/corporations-faq-
29122.html Meier, D. (2005, June1 1). Llc basics. Retrieved
from http://www.entrepreneur.com/article/77966 Laurence, B.
(2012, July 24). How to form a corporation. Retrieved from
http://www.nolo.com/legal-encyclopedia/form-corporation-how-
to-incorporate-30030.html Laurence, B. (2012, October 1). How
to form an llc. Retrieved from http://www.nolo.com/legal-
encyclopedia/form-llc-how-to-organize-llc-
30287.htmlPartnership agreement. (2012, May 5). Retrieved
from http://www.inc.com/encyclopedia/partnership-
agreement.htmlArticles of incorporation. (2012, May 10).
Retrieved from http://www.inc.com/encyclopedia/articles-of-
incorporation.html
*
Task Requirements: 37.5Demonstration and application of
knowledge: 82.5 Academic writing and format: 30Total points
possible: 150
*
IF YOU DO A GREAT JOB ON IP 4, then you will have a much
easier time on your PH 5 IP!
Doing very well on IP 4 will make it smooth sailing for the rest
*

14. *