different business entities are taxed differently. Understanding these basic differences will help you to identify federal income tax obligations as you conduct business with different business formations. Income taxation can impact commercial transactions between different kinds of businesses, such as sole proprietorships, partnerships, franchised, and corporations. Sole proprietorships A sole proprietorship is a small business owned by a single individual. The owner is the business; the business is not
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Assignment #2 – Family Related Issues Law and Ethic in the Business Environment 4/30/2011 1. Explain if it matters that a parent literally had nothing to do with a biological child in order for the child to take advantage of the Family and Medical Leave Act (FMLA) to care for that parent. It does not matter in the case if the parent is biological or not. A parent is a caregiver. Under the FLMA you are entitled to 12 weeks of unpaid, job protected leave. Because a biological
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Small-Business Idea Paper The Dream of Cooking – Grandma Style Christopher Havins University of Phoenix ACC/561 Chuck Royes February 15, 2012 Small-Business Idea Paper The Dream of Cooking – Grandma Style Since graduating high school, starting a new business has been a major priority. In 2012, the federal government, in coalition with state governments, has released funds for creating small businesses. With much excitement surrounding the prospects
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Explain the forms of business. Which form of ownership would you prefer? There are 3 main forms of Business organizations a) Sole Proprietorship (b) Partnership (c) Corporation a) Sole Proprietorship In a Sole Proprietorship, there is no legal distinction between the Sole Proprietor's status as an individual from his or her status as a business owner. Although sole proprietorships are common in a variety of industries, they are concentrated primarily among small businesses such
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structure of business is essential to establish a new business for entrepreneurs. Decision making on the type of business will affect tax, legal, and accounting issues during business operations. According to Kimmel, Weygandt, and Kieso (2009) business structures include sole proprietorships, partnerships, and corporations. The purpose of this paper is to review the advantages, disadvantages, tax implications, legal implications, and accounting implications of each type of business to decide an optimal
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most common and most favored option for individuals who want to establish a small business in Pakistan, or want to start a home-based business. This form of business is used by majority of start-ups on Pakistan, and it is the simplest way of giving corporate face to a small business Formation Following are the main steps to start a sole proprietorship business: · Finalize a business name. · Print basic business stationary i.e. letterheads, visiting cards etc. · Prepare firm's name stamp (a common
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Abstract The topic in discussion here is the suit filed by a company Non-Linear Pro against Quick Takes Video for non-payment of lease amount. The later claims that the product leased to them was of inferior quality and has been owned for less than a month, whereas Non-Linear Pro is trying to charge them for a three-month lease. A noteworthy point is that none of the owners of the company have signed the lease. It has been signed by a third party agent appointed by the company to place and receive
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Introduction This paper provides an overview of the outline of the three legal forms of business ownership, and summarizes the features of businesses owned by employees and families, as well as not-for-profit organizations defining and describing the concepts application. Objectives The goal 7, in chapter 5 introduces the concepts of the levels of corporate management, outlining what are the three main legal forms of business ownership and summarize the features of businesses owned by employees and families
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Yen-Hui Chen Professor Steven J. Mandelkorn Accounting 757 05/20/2013 Section 351 In Section 351(a), it states that “no gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock in such corporation and immediately after the exchange such person or persons are in control.” If we want to make qualified and successful transactions under Section 351 in order to make tax free transaction as it will not recognized and gain or
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LIT1 Task 310.1.2-01-06 Part A: 1. Sole Proprietorship: a. Liability: The owner of sole proprietorship is responsible for all bills that involve the business from supplies to employees. Owner personal’s assets are attainable by creditors in case the sole proprietorship is unable to cover for the bills. b. Income Taxes: The owner would be considers as ordinary person income in which they are tax heavily. Sole proprietorship is unable to take advantage of the lower income
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