Legal Issues for Business Essay

Sole proprietorship is an unincorporated descent with single owner who succumbs in-person income task revenue on dough from the business. The benefit of the sole proprietorship is the tax advantage. The disadvantage of a sole proprietorship is obtaining capital funding. * liability As the owner of a sole proprietorship, one is person some(prenominal)y unresistant for either business debts, creditors may sue you personally to satisfy the debt. * Income taxes As a sole proprietor you must report all business income or losses on your personal income tax return the business itself is non taxed separately. * higher rank longevity depends on the owner and their ability to operate the business this brush off be signifi suffertly affected if the owner becomes sick or dies. * aver The owner is in complete maneuver of the business, It is the owners responsibility for all decisions pertaining to business operations * profit keeping The owner has 100% control of pay re tention. They may choose to invest their profits or purpose it for personal use. * thingmajig/ gist Sole proprietorships ar convenient and effort little to start up since there atomic number 18 no governing laws. A hitch of the business is the decisions made may affect the businesses success argon the sole responsibility of the owner.GENERAL PARTNERSHIPAn agreement make by two or more persons. They are simple and inexpensive to ca-ca and operate, alone the owners are all personally liable for any debts or legal actions * Liability The liability is shared by all accessorys. If one partner does something negligent, all partners can be held liable. * Income taxes All partners are prudent for(p) to report their earnings on their own personal tax returns. * Longevity general fusions longevity is based on the agreement between partners, they can agree to end their union as easily as they formed it. With a partnership between more than two partners, the person divergen ce can agree to sell their portion of the business.* Control Control of a general partnership is shared between all parties involved. * Profit retention All profits of the general partnership belong to the owners. * Convenience/Burden A general partnership has the convenience of an easy start-up, all partners return a personal interest in the partnership and all profits belong to the partners.A main burden with a general partnership is the personal liability of all debts and legalities.expressage PARTNERSHIP express partnership is similar to a shareholder of a general partnership, being solely liable for the amount of investment one has contributed. Limited partners suck in no management authority. * Liability A restrain partner is only liable for the investments they fall in contributed, no more no little. * Income taxes A trammel partner reports their share of capital gains and losses on their personal income tax returns. * Longevity The longevity of a limited partner i s based solely on the amount of investment one contributes and their continuation on their investment. * Control Limited partners generally do not have any control of a general partnership other than their investment. * Profit retention The amount of profit a limited partner will receive is based on the amount of investment into the company. * Convenience/Burden The convenience of a limited partnership is one get to share in the profits and losses, but they do not have to participate in the business itself. A limited partners liability is only limited to the investment they have contributed. A burden of limited partnership can be the lack of occasion for the investment one has contributed,C-CORPORATIONIs a legal way that businesses can raise to limit the owners financial and legal liability. C- corps are taxed separately from the owners. Though they are taxed separately, c-corps have the disadvantage of double taxation, being taxed on the corporate level as well as the sharehol der level. * Liability C-corporations provide limited liability to owners, therefore, owners are not usually responsible for the corporations debts and liabilities. * Income taxes C-corporations are taxed as a separate entity under corporate tax rates for any business income, any profits made to owners are then taxed again at the personal income tax level.* Longevity The smell of a C-corporation can embody indefinitely based on the shareholders, by selling of stocks, unlimited number of owners and transfer of ownership. * Control Control of a C-corporation is held by its shareholders, but may be delegated to a wit of directors. * Profit retention -Because a C-corporations income is taxed twice, paying taxes on its income and the shareholders also paying personal taxes on the dividendincome received from the corporation, there is less profit retention than that of a general partnership. * Convenience/Burden C-corporations have the convenience of unlimited shareholders, as well as no restrictions on who is allowed to become a shareholder. The double taxation of a C-corporation can be a burden to shareholders based on profit retention.S-CORPORATIONA corporation that does not pay federal taxes. All corporate income and losses are passed by to the shareholders and claimed on their personal income taxes. * Liability Shareholders of an S- corporation are offered limited liability for the corporations debt. * Income taxes S-corporations do not pay income taxes, instead, income passes through to the shareholders and is claimed on their personal income taxes. * Longevity Similar to a C-corporation, an S-corporation can pull round indefinitely, though S-corporations have regulatory restrictions on the number of shareholders it may have. * Control The control of an S-corporation is held by its shareholders, but may be delegated to a board of directors. * Profit retention An S-corporation allows its shareholders to keep more of the earned profits by cursory through its income taxes directly to its shareholders unlike a C-corporation which is double taxed.* Convenience/Burden S-corporations have the convenience of retaining more of its profits by passing through its income taxes directly to its shareholders, avoiding the double taxation of a C- corporation. S-corporations have the burden of regulatory restrictions, including limiting the number of shareholders shareholders cannot be corporations and must be U.S. citizens.LIMITED LIABILITY COMPANYA Limited liability company (LLC) is a business entity that offers its owners limited liability. Owners are not personally liable for any debt other than their investment. * Liability owners of a LLC have limited liability they are only liable for their investment. * Income taxes A LLC is not a taxable entity, income taxes are passed through to the owners and their personal income taxes. * Longevity Limited liability companies can exist indefinitely, they have the option of transferring owne rship without restriction. * Control The control of a LLC can be based on the number of owners as well as the amount of investment one has in the company. * Profit retention salary of a LLC is passed through to the owners and istaxed at their personal tax rate, allowing owners to pay less in taxes and retain more profit. * Convenience/Burden Limited liability companies have the convenience of pass through taxation, allowing the owners larger profits. LLCs have the burden of varying restrictions from state to state, there are different surrogate fees and franchise taxes that must be paid and LLCs must pay self-employment taxes.