Read this and replies with at least 1 scholarly source to support your conclusions and ideas, as well as Biblical application in current APA format. (minimum 100 words) Note that “I like what you said,” “that’s a good comment,” and “I disagree with your comment” do not count as a complete reply.
After reading through this business idea, I was excited to see how this would work. I think Peter and Andrew are doing a great thing adding Paul to their team, but it is obvious that Peter and Andrew are still on the fence of whether how much they will incorporate Paul in the business. I think both can be argued for strong reason why the brothers should choose general partnership and why they should choose limited liability company. I have chosen to move towards them going the direction of a limited liability company.
This will add certain liabilities on them but will also protect them from other liabilities and from certain things that could take place that could shut their doors. According to the Inc.com, “LLC owners are not personally liable for business debts such as court judgments or legal settlements obtained against the business. They risk losing only the amount they paid into the business to get it started” (Editorial, 1999). Unlike the general partnership the LLC protects companies from certain taxes and fees that would normally hurt small businesses. To ensure that this companies succeeds I think it would be wise to have the benefits of the LLC. I believe the brothers should inform Paul on their wishes to open this business up to local churches as well. If they are relying on him as a resource, he should be in on the loop because he will ultimately find out. This does not mean he has to be a co-owner, but he can be a member because according to IRS, “Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members” (Limited Liability Company, 2020). Then the last two questions go hand in hand, and I believe that each member of this business of three can be distributed by the amount of work that is being contributed. If Paul and Andrew own the resources, then they can run it but I believe Paul should at least get a 25% cut of the profits and ownership. Then if the company faces loss Paul would be the first to go but at the same time the organization would have to see drastic cuts before that would take place. In conclusion when dealing with the messy side of teams in young organizations it is important to hold to character. As it says in Luke 6:31 “and as you wish others would do to you, do so to them” (Crossway, 2011). Treat everyone with respect and honor knowing that we have been blessed with success to help others and not to ruin others.