you get started. There are many different ways of earning capital to get your business going. Step 5: Determine the Legal Structure of Your Business Decide which form of ownership is best for you: sole proprietorship‚ partnership‚ Limited Liability Company (LLC)‚ corporation‚ S corporation‚ nonprofit or cooperative.
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and called 702 Income or loss. Recognized even if no cash is distributed. Accordingly‚ generally not (a) BOTH have single taxation; ‘S’ over Prop-(b)Liability shield except for personal profession of Business & Capital assets‚ Entities not taxed on distributions. Compute: Ord Income (including Sec 1245 recap); less: Exclusions; liability;(c) profits allocated to owners are not subject to FICA/FUTA(payroll tax advantage); - Exclusions and Deferred Comp less: COGS (result Gross Income);
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LLC Case Analysis Jamil Caldwell Overview: Fe’nix del Sur is a limited liability company that sources and sells a wide variety of South American and African Artifacts. They originated as a trading post operation in the early 1990’s. They are also a major source of southwestern Indian authentic jewelry and pottery. Fe’nix del Sur‚ LLC has a full line of replicas of authentic artifacts they sell to gift buyers. Recently‚ the company was presented a contract that could potentially increase their net
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1] What is legal name of the company? ____________________________________________________________________________________________________________________________________ 2] What is category of the company? a) Corporation [ ] b) Limited Liability Company [ ] c) Partnership Firm [ ] d) Sole Proprietorship [ ] 3] How old your company is? a) 1 to 3 year [ ] b) 3 to 5 year [ ] c) 5 to 8 year [ ] d) 8 to 10 year [ ] 4] The company is‚ a) Private Ltd. [ ] b)
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distributed as dividends to shareholders. 21. Limited liability companies (LLCs) are very popular today as a form of organization. Assume a client asks you to explain what this type of organization is all about. Prepare a brief description of the federal income tax aspects of LLCs. A Limited Liability Company or LLC is a legal form of business organization with daily activities like a partnership but with limited liability similar to a corporation. An LLC is formed in the
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addition‚ LSU offers equipment rental to its clients. However‚ since the nature of the landscaping business is seasonal‚ the company is interested in expanding into snow removal‚ and interiorscaping‚ making it a year-round operation. The goal is to offset the fixed costs the landscaping business incurs in the winter months‚ thereby increasing the overall profitability of the company. Entity Selection Every single fact concerning the business is relevant to the choice of entity decision. Not all
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Christian coffeehouse called “The Gathering Place”. She prides herself on her strong Christian beliefs and values so she wishes to run the company in this same manner. Jackson has a few potential employees that she must decide whether they are suitable for her business interest. Her husband‚ Marvin‚ only wishes to be an investor but does not want to work for the company. Jackson’s sister‚ Kelsey‚ would like to work for her but her husband would prefer that she continued her duties as a stay at home mom
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or clean the signal. Some signals have been transmitted over 5‚000 miles before they had to be processed. Forming a C Corporation business owners create a separate legal structure that helps shield their personal assets from judgments against the company. C Corporations have a specific
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available to shareholders to help ensure that managers are motivated to act this way? Problem 13 You are the CEO of a company and you are considering entering into an agreement to have your company buy another company. You think the price might be too high‚ but you will be the CEO of the combined‚ much larger company. You know that when the company gets bigger‚ your pay and prestige will increase. What is the nature of the agency conflict here and how is it related to ethical considerations
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MANUAL Discussion Questions 1. [LO 1] What are the more common legal entities used for operating a business? How are these entities treated similarly and differently for state law purposes? Answer: Corporations‚ limited liability companies (LLCs)‚ general and limited partnerships‚ and sole proprietorships. These entities differ in terms of the formalities that must be observed to create them‚ the legal rights and responsibilities conferred on them and their owners‚ and the tax rules that
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