Business Arrangements & Global Business Law Coursework

Business Arrangements & Global Business Law - Coursework Example The main advantage is that there would be more than one headcount to take care of the work. Since there are more than one the cost of running would get equally divided and more capital would be available. The income split will make the tax liability less for each of the partners. The business affairs would be private and there would be limited regulations from the external sources (MacIntyre, 2007). It would be easy to change the legal structures with the changing circumstances. Along with the advantages, there are disadvantages as well if they run it in the current model of operation. The liability of debts for each partner might become unlimited. Since there is no written document of the partnership past two years there might be cha ance of friction between the partners. If Barbara, Helen, and Maureen have a written document with all the valid points of their partnership it would be easy for them to avoid any kind of confusion in the future, which might lead to conflict in partners hip. As they are going to expand their business and employee, two people, it is advised to have everything in writing. Task 2 When Barbara, Helen, and Maureen are planning to make their business a limited liability company or LLC it is necessary for them to know about various types of LLCs (GCSE Business Studies, 2004).