BUSLAWS FOTEM1 (20212)

BARROGA, Greechiane Jay B.

Recommendation on Business Form

Most new firms begin as sole proprietorships. This is the most basic form of ownership for a
lone proprietor and requires only a tax ID number. However, if there are taxes or liability
concerns, or if the firm has many owners, different organization forms should be examined.

I would recommend Yohanes Sandy and Clara Alverina to conduct their business as a “general
partnership”. Here Sandy and Clara are considering opening an Online Food Business and as
partners they will be able to invest their capital in their partnership business. In a general
partnership, all partners are jointly and severally liable for the company's potential losses, debts,
and other responsibilities. A partnership is an easy type of business entity to form. It necessitates
a verbal or written agreement. In a partnership, the owners run and control the firm, and all
revenue goes straight through the business to the partners, who are then taxed on their
respective income shares. The partners are individually accountable for all obligations and
liabilities incurred as a result of the business's operations.