Instructions: Replies to classmates must be substantive, add to the discussions, and at least 170 words.The other student’s ideas, questions, concerns were addressed.There were no irrelevant or off-point comments. The reply reflects a clear understanding of the other learner’s ideas.
Student 1: Mac
According to Davidson (2018), a sole proprietorship is a business that “does not exist as a separate legal entity”. Instead, the business and a single person are legally the same. Conversely, a corporation and limited liability company (LLC) are legally separate from the owners and managers of the company. Instead, the LLC or corporation are considered separate “legal persons” (Davidson, 2018). A corporation differs from an LLC in that its owners are stockholders, while an LLC’s owners are direct managers of the company (Business Organizations – FindLaw, 2017). All three are further separated by their level responsibility for debts. Since a sole proprietor is legally that same entity as their business, they are personally responsible for their businesses debts. An LLC member’s level of responsibility is commensurate with their level of investment in the LLC. Last, a stockholder’s responsibility is limited to their investment in the corporation (Organizations – FindLaw, 2017).
In 2010, the U.S. Supreme Court ruled on Citizens United v Federal Election Commission in favor of Citizens United. Prior to this ruling, federal law prohibited corporations or similar entities from funding “electioneering communications” from their general funds (Citizens United v. Federal Election Commission, n.d.). The Supreme Court held that federal law violated the First Amendment. In a 2010 Washington Post article, campaign finance lawyer, Cleta Mitchell, explained that prior to this ruling media corporations were allowed “to freely disseminate their opinions about candidates using corporate treasury funds”, while non media oriented corporations were not (Feingold et al., 2010). This ruling effectively leveled the playing field among corporations.
Business Organizations – FindLaw. (2017). Findlaw. Retrieved 21 February 2018, from http://corporate.findlaw.com/corporate-governance/…
Citizens United v. Federal Election Commission. (n.d.). Oyez. Retrieved February 21, 2018, from https://www.oyez.org/cases/2008/08-205
Davidson, E. (2018). The Differences Between an LLC, a Sole Proprietor & an S Corp. Smallbusiness.chron.com. Retrieved 21 February 2018, from http://smallbusiness.chron.com/differences-between…
Feingold, R., Mitchell, C., Lenhard, R., Gross, K., Burger, A., & Ginsberg, B. et al. (2010). Who is helped, or hurt, by the Citizens United decision?. Washingtonpost.com. Retrieved 21 February 2018, from http://www.washingtonpost.com/wp-dyn/content/artic…
Smallbusiness.chron.com. Retrieved 21 February 2018, from http://smallbusiness.chron.com/differences-between…
STUDENT 2: Anthony
Raising the bar being the bearer for employees, setting the standards, understanding employee input is a pillar to the foundation of business creating a unilateral system of efficiency thats leads to overall success and enjoyment of work. With that being said the difference between sole proprietorship, corporation, and limited liability companies can be very different in the way there governed, orchestrated, structured and executed from day to day. No matter which vehicle you choose threes difference among each. According to smallbiztrends, “The LLC (Limited Liability Company) An LLC is a hybrid of asole proprietorship and corporation. … The LLC gives you flexibility to choose how you want to be taxed. For example, you can structure your LLC to be taxed as a C Corporation or more commonly as an S Corporation (where the business doesn’t file its own taxes).” Futhermore a sole proprietorship acts as its own entity as owner manager and sole proprietor is all in one usually the same person. Obviously there the easiest to form maintain and structure. Another bonus is that sole proprietorship operators can file taxes without having to pay special tax bracketing them. LLC’s have characteristics of both corporations and sole proprietorship as unlike corporations where decision trickle down from the top they are ran by the managers than specific board members. In its best we learn how to make deals strike contracts the art of the deal as adolencse. The first amendment stats “According to the article, in the Citizens United v. Federal Election Commission ruling, they ruled in a 5-4 decision that corporations have the same free speech rights as individuals so they are therefore covered by the First Amendment.”
Retrieved. https://smallbiztrends.com/2013/09/business-struct… Author: Nellie Akalp
www.annenbergclassroom.org/speakout/do-corporations-have-first-amendment-rights. Author: Jeremy Quattlebaum