BUL 2241- Module14 - Edward Olford
1. Because there was more than one owner, a sole proprietorship was not appropriate. A general partnership would lead to individual member liability: Since the deli failed, this would have subjected the partners to significant personal liability. A limited liability company, closely held corporation, or S corporation would both protect owners from personal financial liability. As the deli failed, this would be a benefit. An S corp would offer additional tax benefits, such as allowing investors to deduct their losses from the investment.
2. Yes. The Biscuit Bakery was a sole proprietorship. No matter how Mrs. Meadows signed the contracts, she is still personally liable for the debts of the business. Since
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One difference is taxation. C corporations are separate taxable entities. They file a corporate tax return and pay taxes at the corporate level. They also face the possibility of double taxation if corporate income is distributed to business owners as dividends, which are considered personal income. Tax on corporate income is paid first at the corporate level and again at the individual level on dividends. S corporations are considered to be pass-through tax entities. They file an informational federal return, but no income tax is paid at the corporate level. The profits/losses of the business are instead “passed-through” the business and reported on the owners’ personal tax returns. Any tax due is paid at the individual level by the owners. Another difference would be personal income taxes. When it comes to C and S corporations, personal income tax is due both on any salary drawn from the corporation and from any dividends received from the corporation. Another difference is corporate ownership. C corporations have no restrictions on ownership, but S corporations do. S corps are restricted to no more than 100 shareholders, and shareholders must be US citizens/residents. S corporations cannot be owned by C corporations, other S corporations, LLCs, partnerships or many trusts. Also, S corporations can have only one class of stock, while C corporations can have multiple classes. C corporations therefore provide a little more flexibility when starting a business, expand the
H-E-B History Florence .E .Butt. opens the “C.C.Butt Grocery Store” which was located in Kerrville and in 1905 and she invested sixty dollars so the business could start and when the business started to work the first grocery store was only 750 square feet,they made deliveries to houses and sold bulk food,they delivered goods in wagons. During 1919 when florence youngest son took over the business when he came back from World War l,then Howard E.Butt tried,but failed to open a second store six times. Within the 1920 Florence, youngest son Howard .E .Butt gets to be in business and opens a new store in Del Rio in Laredo,and in the first month Florance made fifty dollars and sixty cents of the sales of the month which is almost the amount of money she invested to start the business.
At issue: May a donee of stock in a corporation that qualified as a small business corporation under § 1244 take an ordinary loss deduction pursuant to § 1244? Conclusion: No, only the orginal holder of § 1244 stock qualifies for ordinary loss
The film “The Corporation” is about corporate America and how it shaped our world today. A corporation is a company or group of people authorized as a single entity and recognized in law. The idea of corporations started hundreds of years ago. Corporations are now much different in today’s world than they were when they started. Corporations are now identified by the law as a person.
Legal Organization Status Airbound Trampoline Park is a Legal Liability Corporation (LLC). A Legal Liability Corporation is a form of “business structure that mixes pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation” (Wikipedia). This means that the owner(s) of the company pay taxes on profits acquired by the business on their own personal tax returns, while still obtaining the perks of not being held liable for liabilities or possible debts of the company. Despite having the name “Corporation” in the title, a LLC is technically considered a legal form of a company rather than a corporation. Legal Liability Corporations are considered “easy going” and “flexible” which makes them great
By giving up the 10% equity to AT, SNC will be able to take on more projects in the years to come and continue to grow. They also will have a financier who supports them and can also benefit as they
How Secure is Secure University of the People Written Assignment Unit 3 Bus 2203 Principles of Finance Everyone needs the feeling of being secure in work, love, money, and life. Saul McLeod (2017) discusses Maslow's hierarchy of need as safety, including security, as being the second level of needs. With a market with some many ups and downs as the stock market how can one feel secure trusting their earnings to a company.
It had a few advantages over other businesses. The Joint-Stock Company helped out by not dissolving the death of the main owner and by limiting their liability, in which
Taxation of an LLC Like a partnership, a limited liability company is a pass-through entity, a tax structure designed to avoid double taxation. An LLC is a non-tax entity. Its profits and losses are reported on its members’ individual tax returns. The members are responsible for paying taxes on the LLC's profits. In practical terms, an LLC, like a partnership, serves as an agent for the Internal Revenue Service (IRS) in collecting and reporting tax data about the company’s income and expenses.