A. Business entity Research shows that Mr. Jones is better off forming an S-corporation opposed to a partnership. 26 U.S. Code 1361 states that an S-corporation is a company that operates domestically within the United States as well as the state in which the Articles of Incorporation are filed. It is more beneficial to be a domestic corporation because home states offer opportunities to reinstate active status to corporations who lapse in registration and taxes. If Mr. Jones fails to pay his annual
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THE REPORT Business Law - Subdomain 310.1.2: Organizational Forms A Sole Proprietorship is ideal for an individual that wishes to keep all of the business controls to the individual‚ for the good and the bad of the business. The individual is legally responsible; there is no protection for the business owner. Liability – The owner is completely liable for all legal actions and can be sued directly. Income Taxes – The Sole Proprietor is a highly taxed form of business‚ for the individual‚ with
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University of Phoenix Material Business Forms Worksheet There are seven forms of business: sole proprietorship‚ partnership‚ limited liability partnership‚ limited liability company (including the single member LLC)‚ S Corporation‚ Franchise‚ and Corporation. 1. Research and provide three advantages and three disadvantages for each business form. 2. Provide a 100- to 200-word summary in which you provide an example business that you would start for each form. What is legally necessary to file
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Sole Proprietorship A business with one owner who is responsible for all features of the business. Everything that happens in the company from the daily operation to the legal obligations are controlled by one individual. Sole Proprietorship Advantages: • Convenience - Usually the least costly to begin. Sole proprietorships are easy to start up. They entail acquiring the proper licenses and permits. Regulations very from industry‚ state‚ and county. There is no administrative configuration
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business‚ an individual has the opportunity of starting a sole proprietorship‚ partnership‚ corporation‚ or LLC (Limited Liability Company). A sole proprietorship is a company that is run by a sole owner. The sole proprietor is the sole possessor of the business and is the only individual who manages the company. The sole proprietor is in authority of giving all taxes for the incomes because the sole proprietor makes all the profits. The sole owner is also responsible for all debts. A
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behind each of the business forms‚ and to do so in a way that eventually allowed one to determine a business scenario that worked best for each form described. In the end‚ it became quite clear that whether a business takes on the form of a sole proprietorship‚ general partnership‚ limited liability partnership‚ limited liability company‚ S corporation‚ corporation‚ or franchise‚ it is vitally important‚ as a business professional or aspiring entrepreneur in today’s marketplace‚ to understand the
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which are: Sole-proprietorship‚ Partnership and a Corporation. The understanding of these is crucial to the decision of which structure is the best one for the entrepreneurs business. In a sole-proprietorship‚ the owner retains total control of all the decisions that need to be made. The ability to raise capital is limited by the financial resources and the credit worthiness of the individual owner. The owner has the ultimate liability for all the actions and debts of the business. A sole-proprietorship
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very important for any organization because it represents strength of any organization. Different types of organization are available in the market and which type of organization it will be it depends on the owner of the company. It may be sole proprietorship or partnership or corporation. It depends on investment and liabilities also. Business license is a important in case of businesses. Every organization needs a business license when they started and government will provide only. Contract
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Small Business Structure Starting a small business is a wonderful way to share your ideas‚ services or inventions with the community around you. There are so many benefits to owning and operating a small business but you first must know the correct steps to take. One of first step in creating a successful business would be to create a well written and thought out business plan. The US Small Business Association also known as the SBA stated “Your business plan is a essential roadmap to your businesses
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different types of small business different types of small business Legal Status The simplest legal forms for small businesses are sole proprietorships and partnerships. Neither is required to be registered with the state and taxes are managed on the owner’s or partners’ personal tax forms. These forms are best when there is little capital property or likelihood of being sued. A corporation is the opposite end of the spectrum‚ requiring registration with state and local authorities‚ separate
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