Sole Proprietor
What is the detention of Sole Proprietor?
A business that legally isn’t separated from the owner. All the income and losses are taxed on the owner’s personal income.
What is the detention of S-Crop and Corporations?
The s means Subchapter, which means a type of corporation of the internal revenue code requirements, the corporations with 100 shareholders that benefit of incorporation while taxed.
Whats the detention of Partnerships?
when two or more people work together to be partners.
Whats the detention for LLC?
Corporate where the owners aren't personally liable of the company debts. Limited liability are hybrid entitle for the corporation with the partnership.
Whats the detentions of Franchise?
A group or company can carry out specified commercial activities and acting like the agent for sa company.
What are some of the advantages of Sole Proprietor?
They are easy to form, and owners get to control, by themselves, over the business profit.
What are some of the advantages of S-Crop and Corporations?
It shields the owners’ personal assets from the business creditors.
What are the advantages of Partners?
Two heads are better than one, and its easier to establish and start-up costs are low.
What are the advantages of LLC?
They offer limited liability protection for the owners and have fewer corporate formalities and great tax flexibility.
What are some advantages of Franchise?
the loans are easier to start the independent business
What are some disadvantages of Sole Proprietor?
The owner is reliably, by themselves, for the loss and liabilities of the business.
What are some of the disadvantages of S-Crop and Corporations?
Stock ownership restrictions.
What are the disadvantages for Partners?
the liability of the partners for debts of the business is unlimited, and there can be risks of disagreements and friction among the partners and management.
What are the disadvantages of LLC?
The profits are self-employment of the taxes compared to the limited partnerships.
What are some disadvantages of Franchise?
The monthly royalty, they charge 4%-6% in the sales. this reduces the profit potential.