name rather than their personal name. However‚ the business is not considered a separate entity and the sole proprietor is still personally liable for all obligations incurred by the business. Characteristics to keep in mind about Sole Proprietorship 1. Liability There is a lack of protection from personal liabilities‚ meaning that the personal assets of a sole proprietor is at risk in the event of litigation. If the business fails‚ any creditor can go after the business assets of the business as well
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SOLE PROPRIETORSHIP: A business owned by a single person and that person is solely responsible for the debts (unlimited). It’s a business that is simple and easy to set up. LIABILITY: The owner of the business is solely responsible. The owner signs business contracts in their own name. INCOME TAXES: Income earned by the business is the owner’s income. The sole proprietor files at 1040 and schedule C & SE. LONGEVITY/CONTINUITY: The business dies with the owner unless there is a Last Will & Testament
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The Family and Medical Leave Act of 1993 provide protection for employees who need to take leave for family or medical reasons. It provides 12 weeks of unpaid leave while the employees’ job and group health benefits are protected. All public agencies‚ public and private elementary and secondary schools and companies with 50 or more employees are required to provides eligible employees the 12 weeks unpaid leave for : Birth and care of their newborn child Placement with the employee of a child
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TASK A Sole Proprietorship A sole proprietorship is an unincorporated business owned by one person. It is the simplest and most common type of business. It is attractive to a business owner because it is simple and offers the owner the freedom to make the business decisions and keep all of the profits. That may also serve as a draw back because the owner has to rely on themself for capital‚ knowledge and liability. A sole proprietorship does not need to meet any requirements to start.
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Western Governors University LIT1: Task 310.1.5-02‚ 11‚ 13 Situation A In this scenario‚ the employee had the right to request unpaid leave to help out the spouse. He has been with the company for two years and the request was to be with his spouse. Under the FMLA Act‚ he is allowed up to 12 weeks of unpaid leave. The leave can be used all at one time or spread out over the span of 12 months to help care for the newborns and/or his wife. He was allowed to return to the same job with the
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May 3‚ 2010 Tax File Memorandum Subject Peaceful Pastures Funeral Home Incorporated prepaid income treatment. Facts Peaceful Pastures Funeral Home Inc. is an accrual basis taxpayer who sells prepaid goods and services to clients that will be provided for them at the time of their death. Goods and services are refundable upon the purchasers request at any time until the contracts are fulfilled. Peaceful Pastures Funeral Home Incorporated is in need of determining the period of recognition
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• LIABILITIES – If the business incurs debt that can not be covered by the profit of the business the owner will be personally liable. You can be sued to satisfy the debt of the company and your personal property can be seized to satisfy company debts. • INCOME TAXES – Forming a Sole Proprietorship allows the owner to avoid the high tax rate that corporations pay due to it not being separate from the individual. • LONGEVITY/CONTINUITY – The business is the same as the owner so the business will
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1 Part A Sole Proprietorship A sole proprietorship is a form of business that is owned by a single individual. • Liability – Due to the lack of legal distinction between the owner and the business‚ the owner is fully responsible and liable for all debts that the business incurs in the same manner that an individual is fully responsible and liable for all debts that they incur. There is no legal distinction between the assets of the owner of the sole proprietorship and the business; this
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LUT1 Task 2 Situation A: In 1993‚ the FMLA act‚ which serves the needs of families trying to balance work life and the needs of the families their working for‚ was established. This act was amended on October 8th‚ 2009 to extend entitlement rights of military caregivers. The FMLA entitles eligible employees the ability to take off up to 12 weeks of unpaid time off within a 12-month period with the benefit of job protection upon returning to the company. The time off is subject to specific
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General partners are those who are responsible for the day-to-day management of activities‚ whose individual acts are binding on all the partners‚ and who are personally responsible for the partnership’s total liabilities. Limited partners are those who contribute only money and are not involved in management decisions and whose liability is limited to the amount of their investment. Joint Venture Joint Venture acts like a general partnership‚ but is clearly for a limited period or a single project
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