further discussions with you. Sole Proprietorship The first option is that of sole proprietorship. This option is the simplest business structure available. It is the least regulated form of business and with the lowest income taxes than most of the corporations (Parrino, Kidwell, & Bates, 2012). The business will be operated by yourself so that you will be in charge of the business from business liabilities, debts, and losses. The disadvantages of a sole proprietorship are that the amount of equity
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legal categories when it comes to a form of business. The three legal categories are partnership, corporations and proprietorships. Most businesses that are started our sole proprietorships. They are owned and operated by one person. Partnerships are owned and operated by two or more people and corporations are legal entities that exist independent of owners (Brooks, 2010). Proprietorships have many advantages. One is that it is easy and inexpensive to form and dissolve. For less than $100 you can
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different forms of business in today’s society. They run from sole proprietorship to corporate form. When someone wants to start a business, he/she has to decide what form of business he/she wants to be a part of. Of all the forms of business out there, this paper will be discussing seven of them, along with scenarios that each of these seven forms would be preferred. The forms of business being discussed in this paper will be: sole proprietorship, general partnership, limited liability partnership, Limited
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ENVIRONMENTS of BUSINESS Ladybud2u AIU As a small business and new business owner there are questions that instantly come to mind. Which form of ownership should one take with incorporating a business; now there are three forms of ownership, the sole proprietorship; a partnership; or a corporation. Being that one may have little to no financial and management skills, no net worth, no idea of what start-up funds one will need, one will still keep their spinning wheels. When one know there are similar products
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decide which form of business entity to establish, the form of business determines which income tax return form one has to file. The most basic forms are to file. Sole proprietorship, partnership, Corporation, and Limited Liability Company (LLC) which is a new business structure allowed by state statues” (irs.gov, 2014). 1. Sole Proprietorship 2. Partnership a.) General Partnership b.) Limited Partnership 3. Corporation a.) General Corporation b.) S-Corporation 4. Limited Liability Company (LLC)
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company. The reading assignment included descriptions on Sole Proprietorship, General Partnership, Limited Partnership, C-Corporation, S-Corporation, and a Limited Liability Company. In this task, a breakdown of characteristics, advantages, and disadvantages will be described about each organizational form. Types and Characteristics of Business LIT Task 310.1.2-01-06 Sole Proprietorship Most businesses start as Sole Proprietorships because they are the easiest to begin and they are the most
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begins to gather information about what it takes to start a business. He learns it’s best to consult with a lawyer or an account about regulations, taxes, job offers and legal matters. The three different business organizations which are, sole proprietorship, partnership and corporation. Making the decision which organization would best help him succeed and serve his customers. Introduction to Business Starting a business is important to seek a lawyer or an accountant. Having knowledge
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Task 1-A Sole proprietorship 1. Liability An owner has unlimited liability both personally and as the company owner. Liability is a disadvantage in a sole proprietorship. 2. Income taxes Owners are responsible for filing taxes and is allowed to file taxes as part of their personal income taxes. 3. Longevity This depends completely on the owner and there continued ability to operate the business. The operation of the business can be significantly affected if the owner becomes
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organized in one of several ways and the form its owners choose will affect both the company’s and owners’ legal liability and income tax treatment. It is important that the business owner considers these different forms of business organizations: sole proprietorship, partnership, and corporations. Various legal structures are available to assist business owners with the organization of their business. These legal structures make provisions for the business’ liability, income taxes, continuity, control,
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1. (TCO E) Interest, dividends, and annuities income are classified as _____. (Points : 5) active income passive income portfolio income None of the above 2. (TCO D) Tom Tanner traded in a printing press with an adjusted basis of $20,000 for a smaller press valued at $12,000. In addition to the smaller press, Tom received $3,000 in cash and was relieved of the existing liability of $5,000 on the old press. What is Tom's recognized gain? (Points : 5)
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