After the sitting in which all the stakeholders were involved, it's evident that the organization has made a pivotal plan to ensure that they save their money for the accomplishment of their goals, the compliance with the tax obligations and also following the other regulations to ensure that they perform and operate within the required zone with little or no violation of the set standards. The type of business formation chosen by the Tai-Ga organization has taken a considerable part in the characterizing of the business structure as it has helped in the enhancement of a good connection between the investors and the outside world. The structure has also ensured that the stakeholders are in a position to run the organization despite the many diverse situations that each of them is in.
The structure of the Tai-Ga organization has also ensured a good representation of the proper setup, one that is in a position to establish all the rights and the liabilities of a health business. On the other hand, the control of the market has assumed an essential part of the primary and overall leadership, and all these factors will ensure an effective and efficient administration of the organization's operations. The total financing of the institution is well influenced as the stakeholders have had money and are all ready for the opening of the business and some have even offered to work in the day to day running of the organization. The others who may have their professional forms of employment denying them such an opportunity have ensured they invest their funds willingly (Rajagopalan, Ramanujam, & Tsampalis, 2014).
It's however, very advisable for the company to go on with the partnership program. This is because in partnership all the stakeholders will contribute the required capital and resources for the running of the business. For instance, Naomi, who is very young have been looking for an opportunity to start her own company. This shows the readiness she has, and she as well can deliver in that she had been working in an auto part warehouse as a manager. Naomi can thus be of great help and offer her warehouse managerial skills to this organization. Carrie will as well help in the contribution of the ideas in the development of her various products. David Duncan will thus help in giving the marketing knowledge as he has a good understanding about the multiple ways of marketing a product after having worked or over 25 years as a marketing expert (Rajagopalan, Ramanujam, & Tsampalis, 2014).
The formation of the business on the partnership basis has the various advantage that will help in keeping every stakeholder in the market and the smooth running of the Company. First, all the members will enjoy the splitting of the income as the money belongs to them and the splitting is done by the agreement made in the business formation plan. For instance, in the Tai-Ga organization, the income is to be shared among all the stakeholders where Carrie will get 50%, David will get 20%, Naomi 5%, and Andy will be getting 25% of the total income. The above percentages are determined by the rate of ownership that each has for the Tai-Ga organization (Lu, Shambour, & Lin, 2013).
In the partnership structure, the stakeholders are better placed to change the legal structure of the business in the future if need may arise. In some cases, the company may change its course, and probably a member decides to increase his number of shares in the business or even the withdrawal from the market. In partnership, these processes are elementary and more applicable as compared to the s-corporation or even the c-corporation. In alliance finally, all the individuals will be required to pay for the taxes individually, and thus the organization has an added advantage as the organization will not be expected to pay any taxation (Prussak, 2013).
However, the partnership has various disadvantages, but the difficulties are smaller and can't outdo the benefits it has in business. The liability for partners is unlimited and thus the management at times is hard though manageable if all the partners have a good will and work in coordination towards the growth of the organization. In Tai-Ga organization all the members seem responsible, however, and this is less likely to occur as all have committed either their capital or skills. Several disagreements may happen from time to time, but the Tai-Ga organization have a good agreement plan that will help in the solution of any disputes that may arise in the course. Asset valuation will always be done at the exit of a partner or when a new member is joining. This might not apply to Tai-Ga organization as all the stakeholders seem to have already been settled and determined to grow in this newly established company (Hiller, 2013).
In matters to do with the depreciation method and asset lives, it is essential for the company to ensure it uses the easy bookkeeping method or the depreciation by usage method. These two will help in the determination of the number of years a given asset has been in the organization and will also help in knowing how frequently the asset has been used, the repairing, maintenance, and other operation. The organization should also ensure that the business year ends at the same time as that of the government for taxation purposes (Henderson & Howieson, 2015).
Henderson, S., Peirson, G., Herbohn, K., & Howieson, B. (2015). Issues in financial accounting. Pearson Higher Education AU.
Lu, J., Shambour, Q., Xu, Y., Lin, Q., & Zhang, G. (2013). A webbased personalized business partner recommendation system using fuzzy semantic techniques. Computational Intelligence, 29(1), 37-69.
Prussak, A. Y. (2013). The Income of the Twenty-First Century: Online Advertising as a Case Study for the Implications of Technology for Source-Based Taxation. Tul. J. Tech. & Intell. Prop., 16, 39.
Rajagopalan, P. D., Ramanujam, L., & Tsampalis, I. (2014). U.S. Patent No. 8,712,841. Washington, DC: U.S. Patent and Trademark Office.
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