Английский язык. Практический курс для решения бизнес-задач

8. An action or a prosecution of a claim in a court of justice.

9. To prohibit the liquidation, collection, or use of assets, loans, or funds by law.

Exercise 4*. Fill in the blanks using terms given below.

Choosing your Business Structure

One of the first decisions that you will have to make as a business ….. is how the company should be structured. This decision will have long-term implications, so consult with an accountant and …… to help you select the form of ownership that is right for you. In making a choice, you will want to take into account the following:

Your ……. regarding the size and nature of your business.

The level of ……. you wish to have.

The level of ……. you are willing to deal with.

The business' vulnerability to ………

……. implications of the different ownership structures.

Expected profit (or ……) of the business.

Whether or not you need to ……. earnings into the business.

Your need for access to ……. out of the business for yourself.

Sole Proprietorships

The vast majority of …… businesses start out as sole proprietorships. These firms are owned by one person, usually the individual who has day-to-day ……… for running the business. Sole proprietors own all the ……. of the business and the profits generated by it. They also assume complete responsibility for any of its ……. or debts. In the eyes of the …… and the public, you are one and the same with the business.

Partnerships

In a partnership, two or more people …… ownership of a single business. Like ……… the law does not distinguish between the business and its owners. The partners should have a ……. agreement that sets forth how decisions will be made, profits will be shared, ……. will be resolved, how future partners will be admitted to the partnership, how partners can be …… out, and what steps will be taken to dissolve the partnership when needed. Yes, it’s hard to think about a ….. when the business is just getting started, but many partnerships split up at crisis times, and unless there is a defined process, there will be even greater problems. They also must decide up-front how much time and ……. each will contribute, etc.

Corporations

A corporation …… by the state in which it is headquartered is considered by law to be a unique ……., separate and apart from those who own it. A corporation can be taxed, it can be……, and it can enter into ……. agreements. The owners of a corporation are its …….. They elect a ……. to oversee the major ……. and decisions. The corporation has a life of its own and does not …… when ownership changes.

Subchapter S Corporations

A tax election only; this election enables the shareholder to treat the earnings and profits as …….. and have them pass through directly to their personal tax return. The catch here is that the shareholder, if working for the company, and if there is a profit, must pay him/herself wages, and must meet standards of «reasonable ……..». This can vary by geographical region as well as occupation, but the basic rule is to pay yourself what you would have to pay someone to do your job, as long as there is enough ……. If you do not do this, the …… can reclassify all of the earnings and profit as wages, and you will be liable for all of the payroll taxes on the total amount.

Limited Liability Company (LLC)

The LLC is a relatively new type of hybrid business structure that is now …….. in most states. It is designed to provide the …….. features of a corporation and the tax efficiencies and operational flexibility of a partnership. The owners are members, and the duration of the LLC is usually determined when the organization papers are ……. The time limit can be continued, if desired, by a vote of the members at the time of ……. LLCs must not have more than two of the four characteristics that define corporations: Limited liability to the extent of assets, ……. of life, centralization of management, and free …… of ownership interests.

Source: www.sba.gov .

Terms:

law, liabilities, transferability, IRS, profit, bought, sued, continuity, contractual, compensation, tax, breakup, limited liability, lawsuits, BoD, owner, attorney, filed, policies, tax, permissible, chartered, expiration, vision, control, structure, reinvest, cash, small, responsibilities, share, loss, proprietorships, legal, disputes, capital, entity, shareholders, dissolve, distributions, assets.