Biblical application in current APA format
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.
In this specific case, I would advise that Peter, Andrew, and Paul form a limited liability company (LLC) versus a general partnership (GP). Both a general partnership and LLC are considered to be a separate legal entity but offer different levels of liability to each owner (Spilker et al., 2021). In a general partnership, all partners are responsible for the liabilities of the business (Spilker et al., 2021). This is different from a limited partnership in which limited partners contribute capital, but are not involved in the operations of the business or liable for more than their initial investment (Spilker et al., 2021). The general partner has unlimited liability but is able to make decisions in the business (Spilker et al., 2021). With an LLC, the entity itself is responsible for the liabilities of the business, but the owner are personally liable up to their initial investment (Spilker et al., 2021).
When it comes to determining the legal arrangements of an entity, typically each state has its own set of default rules (Spilker et al., 2021). However, both a GP and LLC have flexibility in the matter. The owners can create their own agreements on how they want to split up the profit and losses or divvy out the duties of the business (Spilker et al., 2021). FASB codification 260-10-5-4 states that the net income (or loss) of the partnership is allocated to the capital accounts of the partners based on their respective sharing of income or losses specified in the partnership agreement (Financial, 2020). Peter, Andrew and Paul would have to decide for themselves how they wanted to value each owner’s contributions to the business and how that would affect their profit/loss distribution. There is no “wrong” way to split it as long as all parties agree to it.
I would also recommend that the brothers speak to Paul about the mission aspect of the business. If he is not on board, I would not include him as a co-owner. Proverbs 27:17 states, “As iron sharpens iron, so one person sharpens another.” Peter and Andrew clearly have a goal in mind and are challenging each other as believers. Paul might inhibit this and prevent them from fulfilling the calling the Lord has placed upon them. This is not to say that they couldn’t include Paul in other ways. He could consult with them or possibly refer a friend who might fit the job description better. In addition, he could possibly be a co-owner, but they could limit his responsibilities and/or financial gain specified within the agreement. Ultimately, the decision would be up to Peter and Andrew, but they would most likely have an easier time running the business by themselves.