Types of business entity

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

distinct procedures in accounting for its assets in relation to its tax liability (Pope, Anderson, &Kramer, 2010). In the rest of this paper, we will first discuss the capital structure and legal structure of L3C. Then, we will give a typical L3C entity example to illustrate the benefit to both investors and social. Moreover, the last discussion will be involving some criticisms and the existing problems of the L3C. II. Capital structure A. Program-related investment (PRI) To understand the capital

a golf outing, all-expenses paid by a company, seeking to do business with the State Government? Response The State of Georgia has requested an advisory opinion on the question that is being

decision on which classification of business she should open with my personal recommendation as a business planner and accountant. The intention of this report, is to provide an overview of three different types of business formations that are being recommended for consideration. A significant amount of research into the business law will be further needed prior to the opening of the business to determine which state is best to incorporate into based on their own business laws. In addition, there are an

Business impacts each part of individual’s life. Acquiring goods or services that are obliged day by day to keep up and fulfill lives are the reasons why businesses succeed. Creating a business can be a troublesome assignment, when a person starts a business so many risks can develop. Not only is he or she considering the risks, but the most important decision one has to make is to select the type of legal structure. This decision will have an impact on the amount of paperwork the business will be

disadvantages of changing the company organization from a sole proprietorship to a LLC? The McGee Cake Company, currently operating as a sole proprietorship, may benefit from forming a limited liability company (LLC). An LLC is a comparatively new type of business entity. With an LLC there are reduced legal formalities in comparison to setting up a corporation. In addition, unlike a corporation, the McGees could set up an LLC yet remain the sole owners of the company. Another advantage as the owners of an

istinguish between general partnership and a limited partnership. General Partnership: is a business formed by one or more partners, who equally share profits and liabilities for the company. This type of partnership is created by agreement, estoppel, and proof of existence. The partners or owners are all personally liable for any debts and legal actions that the business may face. In a general partnership all partners have the ability to actively control or manage the partnership. Ultimately, each

Paper A basic idea starts every business. When starting a business, a decision has to be made as to what form of business entity needs to be established. Protection and capitalization of the business must also be established, with the most basic question being what type of entity should be used when moving forward with the business. There are many different factors that have to be considered when making this decision. The most similar type of business is the partnership, sole proprietorship

Under the tax law, certain tax benefits can significantly reduce a taxpayer’s regular tax amount. The alternative minimum tax (AMT) applies to taxpayers with high income by setting a limit on those benefits. It helps to ensure that those taxpayers pay at least a minimum amount of tax. The AMT is the excess of the tentative minimum tax over the regular tax. Therefore, the AMT is owed only if the tentative minimum tax is greater than the regular tax. The tentative minimum tax is figured separately

Business Organizations Task 1 7/14/15   Business Organization Essentially, a business organization is a body that is formed for the aim of conducting a commercial enterprise (Bank, 2004, p. 2). Sole Proprietorship Brief Description A sole proprietorship is a form of business structure that is owned and operated by the same owner simultaneously (Schneeman, 2012). Characteristics • In this type of entity, it is difficult to draw a distinction between the owner and the business. • In the legal language