BUL-3310 Lecture Notes - Lecture 28: Uniform Partnership Act, Deferred Compensation, Federal Trade Commission
22 Nov 2017
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Franchisors may be required to register offering circulars, and franchisors may also be required to disclose certain financial information to franchisees. This agreement is best reduced to writing (articles of partnership): partnerships are governed by the common law as codified in the uniform. Partnership act and its revisions: advantages to partnerships, a partnership is easily and inexpensively formed, partnership pays no taxes. Act (rulpa: lps are formed by partners signing certificate of limited partnership. Deferred compensation plans may be established; and retained earnings are not taxable: losses cannot be deducted by shareholders; dividends are taxed as personal income. Corporations are subject to taxes not applicable to individuals: avoidance of double taxation: reasonable salaries and other payments may be deducted from taxable income. Interest paid on capital loans may also be deducted: retaining dividends (too much accumulated dividends are subject to a separate tax)
