are minimal. You alone own the company and will be responsible for the assets and liabilities. The business will not be taxed separately. When filling for tax you will need the form 1040 schedule C. The disadvantage of sole proprietorship is that it has unlimited personal liability, heavy burden because you are alone will be responsible for the success and failure of the company and hard to raise money. * Partnership – there will be two or more owners of the business. All the owners will contribute
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Limited Liability Corporation, Limited Liability Partnership, Corporation Paper Angelika Evanoff FIN/419 July 20, 2015 Mrs. Michele Huss Limited Liability Corporation, Limited Liability Partnership, Corporation Paper The purpose of this paper is to discuss three legal forms of business organization; a limited liability corporation or company, a limited liability partnership, and a class C corporation. The paper begins with a brief description of each structure, followed by a comparison and
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disadvantages of each entity and the tax consequences connected with each entity. The business structures that will be discussed with Mr. Owner will include sole proprietorship, partnerships which include general partnerships and limited liability partnerships and corporations which include subchapter or S corporations and limited liability corporations. Sole Proprietorship A sole proprietorship is the simplest structure and the most inexpensive business to start. The owner has complete control over the
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the business. In the eyes of the law, the business and the owner are the same. As a result, the owner is personally liable for the firm's debts and may have to pay for losses made by the business out of their own pocket. This is called unlimited liability. Advantages * It is easy to set up as no formal legal paperwork is required. * Generally, only a small amount of capital needs to be invested, which reduces the initial start-up cost. * As the only owner, the entrepreneur can make decisions
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There are two ways you can choose and insurance company either by enrolling the help of an Independent insurance agent or by scouting for the right company yourself. An Independent Agent is a small business owner who represents a number of insurance companies, different from agents employed by large insurance companies that employ agents to sell their products. They are the middlemen of insurance. Why use an independent Insurance Agent? One would wonder why in this digital age one would look for
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personally liable. This type of partnership gives flexibility to how involved a partner needs to be as well as their liability which could be an advantage and disadvantage. Limited liability partnerships add another option allowing for general partners to have limited liability for the debts and obligations of the business. An advantage to this type of business is that a general partner can manage the business but have limited liability to its debts. Each type of business entity offers pros and cons
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frequently the most obvious choice is to form a partnership. But, like everything, partnerships come with their own pros and cons. In fact, forming a partnership should be based on what is best for the company, not simply because there is more than one person involved in the business. There are three types of partnerships - a general partnership, limited partnership, and limited liability partnership. General Partnership General partnerships consist of two or more partners who are both responsible
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entrepreneurs. There are Sole proprietorship, general partnerships (gp), limited partnerships (lp), limited liability companies (llc), s corporations and c corporations. Each one of them serves a purpose depending on your needs and the needs of your business. A Sole proprietorship is easy to start and has no costs to begin as this like some others; also there are no annual reports required or operating documents. On the other side owner don’t have any liability protection, it means you are liable for everything
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...................................................................5 Social Enterprises ..............................................................................................................5 Partnership and Limited Liability Partnership ....................................5 Limited Company...................................................................................6 Community Interest Company ............................................................6 Industrial and Provident
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