Structure of a bail bond business
Bail bond business is a corporation or an agency that pledge property or money and act as a security for the appearance of a person accused in court. Bail bond business help criminals to be released out of jail with a certain charge so as they can be able to fight their charges freely. The bail bond is a very risky business and it only requires people who are incarceration to face and meet obligations and also people who are committed to this business so as to lower the risks. Bail bold agency requires rules and regulations in order to license and keep the record of an individual who has transacted fee given from the business. Through keeping the records of the bail bond business it can be easy to run the business efficiently without counting of loss. A bail bond can function well if it is allocated in an open place for instance if it is located near a court. This paper is focusing on the structures of bail bond business in Florida.
Sole proprietorship structure
Structures of bail bond business in Florida are a sole proprietorship, partnership, and corporation. Florida is a unique state to operate a sole proprietorship as compared to other states. Running a bail bond business on your own helps an operator to keep an appropriate accounting of the income and expenses. Operating a bail bond business as a sole proprietorship assists an individual in evaluating the tracks and progress at own expenses which can make a bail bond business to work easier. For a person who is operating as a sole proprietorship, he or she has to license his or her business so as to execute the file of the qualifying power of attorney form. Individuals who are operating bail bond business in Florida, are licensing their company in order to operate their business effectively hence lowering the risk in the business (Johnson & Ruth, 2013).
Partnership structure
Eric and Alexander (2004) implied that bail bond business in Florida can also operate with partnership either in general partnership or in a limited partnership. When a bail bond operates in partnership, responsibilities in the business rely on all partners of the business for instance when a loss incur in the business all the partners have to contribute an amount of money. With a general partnership, the bail bond business takes for granted by the assuming liability meant for the partners in the business. Limited partnership serves the bail bond business accepting the liability in the business without assuming liability for the partner
Corporation structure
Corporation is the expensive bail bond business as well as some of the drawbacks. In Florida, the bail bond operators in the corporation structures subject to corporate income are distributed to the shareholder in the company and each member have to contribute an amount of tax as it compares to their income rate. In a corporation structure, any individual act as a guarantee and pledge money of the bail bond business is accused in court (Johnson & Ruth, 2013).
In briefly, in Florida, the three structures all function well in bail bond business but the sole proprietorship is the best as it is compared to partnership and corporation structure. With partnership structure, the bail bond can operate in two ways that are in general partnership and limited partnership. Bail bond business can also work with corporation structure where the business can continue even when the owner has passed on.
References
Johnson, B. R., & Ruth, S. S.(2013). The Regulation and Control of Bail Recovery Agents: An Exploratory Study. Criminal Justice Review 38(2), 190-206
Eric, H. & Alexander, T. (2004). The Fugitive: Evidence on Public versus Private Law Enforcement from Bail Jumping. The Journal of Law and Economics 47(1), 93-122.
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