They have to weigh in their tax advantages and their limits of liability. In a sole proprietorship‚ the owner is responsible for both personal taxes and business taxes. There are no limits of liability. They are financially responsible for both business debt and personal debt. If the business is sued for any reason‚ a sole proprietorship may have to sell his personal assets as well as the business assets to pay a financial obligation. The corporation is
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must know which your business structure options are‚ these include: sole proprietorship‚ partnership and corporation. A partnership could be general or limited and a corporation could be a general or a subchapter S-corporation. Each of these options has their advantages‚ disadvantages and differences regarding tax consequences. I strongly suggest you choose the one that best fits your products’ or services’ needs. A sole proprietorship is the best business structure for those starting out with limited
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Finance An Overview Keywords shareholder Principles Principle 3 Cash Flows Are the Source of Value 3) Which of the following factors enable a public corporation to grow to a greater extent‚ and perhaps at a faster rate‚ than a partnership or a proprietorship A) Unlimited liability of shareholders B) Access to the capital markets C) Limited life D) Elimination of double taxation on corporate income E) All of the above Answer B Diff 2 Topic 1.1 Finance An Overview Keywords corporation 4) Which
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liabilities for injury to consumers caused by fireworks can be devastating to those involved but taking precautions and having warning labels/notices can reduce these risks. Taking on larger business sales of fireworks should include changing from a sole proprietorship to a LLC. With this transition there would also be an increase in employees or independent contractors in order to manufacture more product for the high volume of orders. Creating a valid contract is most important to have before making any
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Brief Exercise 11.1 Alpha Company Stockholders Equity section of the Balance Sheet Issued and outstanding common stock (10‚000 * 10) 100‚000 Additional paid-in capital (10‚000 * 3) 30‚000 Total paid-in capital 130‚000 Retained Earnings 75‚000 Total Stockholder Equity 205‚000 Brief Exercise 11.2 Beta Company Stockholders Equity section of the Balance Sheet Issued and outstanding common stock (10‚000 * 25) 250‚000 Issued and outstanding preferred stock (10‚000 * 100) 100
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TABLE OF CONTENTS Business Structure 2 Sole Proprietorships 2 Partnerships 2 Limited Liability Companies 2 Corporations 2 Identification Numbers 3 Taxes 3 Recordkeeping 3 Assets 3 Business Checkbook 4 Tax Year 4 Insurance 4 Guidelines for Potential Store Owners Preliminary Draft Campbell’s Confections often receives requests from individuals to open and manage a new candy store. To help prospective owners‚ Campbell’s Confections has prepared a guide to provide answers
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explained are sole proprietorship‚ partnership‚ limited liability partnership‚ Limited Liability Company‚ S corporation‚ franchise‚ and corporation. Each business type will be given a scenario as well as a justification as to why that type of business is preferred. Business Type‚ Scenarios‚ & Justifications Sole Proprietorship is the simplest form of business (Cheeseman‚ 2010‚ p. 530). An owner and the business are considered one entity in a sole proprietorship. “Sole proprietorships are the
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and continuity‚ fundraising‚ managerial control‚ public ownership‚ tax planning‚ and limited liability.” The nature of the business being conducted has little to do with the way the business is organized. (Johnson‚ 2013) Sole Proprietorship: The basic concept of sole proprietorship is that there is no distinction between the individual business owner and the business. To start this
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many other “appliances” making the product quite versatile and therefore appealing to a wide range of markets. For the person to be able to make a wise decision about how to make his project a reality we look at three types of business‚ the sole proprietorship‚ general partnership and corporation‚ while considering the advantages and disadvantages. After looking thoroughly at these types of businesses‚ we try to make an informed decision in which type to recommend for the project‚ keeping in mind
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LIT1 – Task 310.1.2-01-06 Part A SOLE PROPRIETORSHIP: A sole proprietorship is the easiest of all the business types to start and take the least amount of start-up capital. This is also the most common form of doing business in the United States. With a sole proprietorship‚ the business and the owner are one in the same and it is not possible to bring someone into the business. Liability: The owner is responsible for the debt of the business. There is no differential made from the business
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