July 01, 2013
There are 4 main kinds of business constructions. The set ups of business differentiate depending on liability, taxes implications, and what type of organization is being evaluated when identifying what composition to use. This paper will handle the advantages and disadvantages within the 4 types of business structures; Limited Responsibility Corporations, Corporations, Partnerships, and Sole Proprietorships. Corporations
A company is a standalone entity. You will discover two types of corporations, standard or S Corp. Features of corporations consist of limited responsibility, capital through stock sales, attractive to workers, and receiving business tax treatment. S Corps, in addition to limited the liability, have tax savings since the owners are taxed individually. A disadvantage of an H Corp may be the limited growth as T Corps may well not have more than 100 shareholders. General organizations file income taxes separately by his or her owners while S Corporations do not. Disadvantages of any corporation happen to be time and money, large amounts of recordkeeping, and susceptible to double taxation. Double taxation is taxation on the business level and again over a member's personal level (" U. S i9000. Small Business Administration, вЂќ 2013). Corporations are generally suited for large business organizations. Limited The liability Corporation (LLC)
A Limited Legal responsibility Corporation (LLC) is a company incorporating the benefits of a partnership and a corporation. A LLC will act as its own business with the limited liability, although also has the tax savings as if it were a sole proprietorship (" The Advantages of an LLC CompanyвЂќ, 2013). Advantages of an LLC happen to be limited the liability, require fewer paperwork, and possess the ability to profit share. Down sides of an LLC are limited life and members will be subject to self-employment taxes. Users of an LLC are considered a sole proprietor; therefore the individuals file income taxes through personal...
References: U. S. Sba. (2013). Retrieved from http://www.sba.gov/
The Advantages of the LLC Firm. (2013). Houston Chronicle. Recovered from