may cause while working for him. * Income Taxes: The owner pays ordinary income tax on all profits. This can be an advantage because most of the time personal tax rates are lower than corporate rates. But, a sole proprietor will have to pay self-employment tax at a rate of 13.3% for the first $106,800 of income and 2.9% after that. The owner needs to register for an EIN (Employer Identification Number) if he will have employees. Payroll taxes need to be paid on employees. * Longevity/
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without any disputes or errors . • Paid taxes on time An Accountant can help the company by paying taxes on time. There will be no need to calculate taxes separately as it will be calculated by the accountant which will in turn save the time and hence can be used in some effective and efficient manner. Apart from this he can also provide much relevant information related to taxes like : • Amount to put aside per month for tax bills • What type of taxes will have to pay and when will have to pay
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basic Legal, Social, and Economical Environments in owning and operating a modern Coffee House as a Sole Proprietor. I will describe in depth my options and decisions for obtaining the funds to start the company. I will then be describing the Legal aspects, the Social Environments involved, and the Economic Environments and all the decisions to be made as I plan a clear path to owning and operating a modern day Coffee House. Including how I plan to keep it up to date with the latest technologies
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Why Does Someone Own A Business? • View of Authors. Epstein believes that people start businesses to make money. Roberts and Shepherd believe that this is basically correct, but that businesses are organized to "create value." Shepherd also believes that businesses can be started to help people. • Other Experts. Other experts such as Milton Friedman look at corporations solely as a way to maximize profits and shareholder value. Principal and Agent • Principal. "'Principal' is a word used to
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INVESTMENT DECISION AND CASH FLOWS A positive net present value (NPV) is a direct estimate of value creation for shareholders and is an operational way of carrying through on the strategy of trying to maximize shareholder wealth. To calculate NPV, however we need to estimate the cash costs and benefits of any decision at hand. In this note we discuss the evaluation of investment proposals. Cash Flows: Basic Concepts The cash flows that we will use in our analysis are incremental after-tax cash
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Summary Taxes and Business Strategy Chapter 1: Introduction to tax strategy The objective of the book is to provide you with a framework that is useful for thinking about how taxes affect decisions, both at the individual level and within organizations. The book adopts a global planning approach to taxes and business strategy. A. The three key themes underlying our approach to effective tax planning 1. Effective tax planning requires the planner to consider the tax implications of a
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requires a decision governing what form of business organization the company or corporation should operate under. This decision must be made before the business has actually begun operations. The owner must make two initial decisions in order to begin their business operation: the type of business entity to be used and where the business assets will come from. The decision depends on several factors, including the capital requirements of the business, the flexibility of management decisions, costs of
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during regular hours, the home side-work is moonlighting. Many hobbyists can also become sole proprietors if their hobby becomes popular and providing orders to customers. The electrical contractor or hobbyists, enjoy their independence and self-management. The sole proprietorship owner decides
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As a financial manager three major decisions are to be made which are investment, financing, and dividend decisions (Pujari, S 2015). When decisions are made in investments financial managers carefully select fixed assets also known as capital budgeting decision or current assets in which funds will be invested by the company (Pujari, S 2015). There are factors that affect the investment and capital budgeting decisions such as cash flow of the project, return on investments, risks involved, and investment
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also crucial to know all your options and think through your actions before implementing them. One of the first steps in the complex process of starting up a company, and maybe the most important step, is to decide on a business structure. This decision will also determine what kind of income tax return the company will have to file, a tax that is imposed on entities and that will change along with the income or profits of the entity. However, there are also some other important factors the business
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