Social Responsibility

Sole proprietorship This business is an idiosyncratic owned organization. This business is the most attractive because of its simplicity and rig oer the business. * Li powerfulness-. This business has un trammel obligation. The owner is prudent for everything. If the business begins to fail individualized assets and business assets can be sought after(prenominal) to pay bump off debts. There is no distinction between the 2 assets. * Income taxes- Business owners in a fillet of repair proprietorship file a 1040 as sanitary as a schedule C (profit or difference from a business or profession). The owners ad hominem income is supplemented by all simoleons of his business.This form of taxation is known as depict-through taxation, meaning there is no separate federal income tax inform for the proprietorship. * senior status/continuity In the event the sole proprietor dies and aforethought(ip) steps were non properly carried out the business result cease. deplorably the familys source of income is no longer available. Life insurance is an grievous need to the proprietor, it may be the familys wholly source of income. second a will is a must have with precise expatiate on to whom and how the business should be carries out. Its besides important to pre-plan with his chosen representative, teaching them how the business is pull offd. Control The sole Proprietor may involve to directly run his business or hire others to manage for him. creation in total say-so of the business the proprietor is solely accountable for the major functions of his business. Leaving him with the responsibility of guiding his business down the trail of success. * Profit retention All profits belong to the owner. There is sole gain, no partners or stockholders to share proceeds with. * Location One of the ruff things about a sole proprietorship is there are no limitations on the business. If the owner wishes he can expand, down size, move locations, or tell on hi s business at will. Convenience/Burden A sole proprietorship has the convenience of absolute freedom of action. A downfall to the Proprietor is the responsibility of running a business that pays the bills. In the event he were to die become ill or injured the business could no longer run. General Partnership This form of business consists of twain or more partners. The partners are the founders of the organization. * Liability Being co- owners, the partners have equal rights to the pigheadedness of the partnership assets. They cant make do, assign, or transfer their individual shares of the ownership. apiece partner is un modified liable for the firms obligations. Partners are responsible for the debts. Any debt non covered could be made up from individual(prenominal) assets. Partners are responsible for one another. * Income taxes There is no federal income tax imposed on the partnership. Individuals must file an informational tax return. Each partner must embroil his share o f the profits. Partners can take advantage of the partnerships losses to offset their individualized income. * Longevity/Continuity If a partner were to die, sell, or retire his or her part of the partnership would be dissolved.Exception would be the buy sell agreement. Meaning the surviving partner must buy the deceased partners enliven from the heirs. Personal ownership dies but the deceased interest possess to the deceaseds personal representative. * Control Each partner has equal authority. In partnerships with more than two members the majority will rule. Each partner becomes an element of the other. A partner may not assign or sell partnership property, admit another to the firm without the consent of all associates, or sell their interest to another without consent of the partners. Profit All profits and losses are distributed equally throughout the partnership. * Location The rules and regulations vary from sound out to state . General partnership should use Schedule R to conduct income between the states. * Convenience/Burden The main advantage of this form of buisness is broken volume of paperwork needed for registration and its cheapness. Limited Partnership This business has two or more partners overmuch like the general partners. There is a few key differences though. * Liability There is a partner that carries undecomposed liability and the others are limited liability. Income Tax Income taxes are paid after the partners have received their share. There is four characteristics that would make a limited partnership have to pay corporate taxation. They only need two of the four to qualify. * Longevity/Continuity In the case of a expiration the partnership would most likely end. * Control The general partner would control the daily business for the partnership and the limited partners just have control over the investments. * Profit Retention All profits are distributed evenly through the partnership. * Location Partners should pay taxes according to the amount made in each state. Convenience/Burden The ability to have funds from the limited partners and not having control. On a negative side there would be a risk if a partner dies or leaves the partnership. C-Corporation This mass is also known as the regular organization. They have an unlimited amount of stockholders, allowing twain residents and non-residents in. * Liability Owners are limited to the amount of his or her investment. All personal assets are safe. * Income taxation The C- Corporation is taxed as a corporation. Net income is paid to shareholders for dividends. They also pay personal income tax, thus meaning they are recapitulate taxed. Longevity/Continuity The life period is unlimited, as long as they have the money to back up the debts they will not be affected by the death of a stockholder. * Control Shareholders do not directly manage the business they elect the dialog box of members that will manage the business. * Profit Retention Profit c an be used in two ways. One it can be invested in the business or can be paid out in dividends to shareholders. * Location embodied taxes are equal in all states. * Convenience/Burden The ability to raise money for funds is an advantage. It also benefits from the ability to continue if a shareholder leaves the business.And obviously the double taxation is a big negative. S-Corporation This corporation has all the advantages of the previous businesses but also has its own disadvantages. * Liability Shareholders liability is limited to the amount of investment. * Taxation Comp either doesnt get taxed itself, only shareholders pay taxes. * Longevity/Continuity conjunction is unlimited same as an S-Corporation. The shareholders will not affect the organization. * Control The company is ran by the board of directors. Stockholders have corporate meetings. * Profit Retention Same as the C-Corporations, pass through tax. Location Must be domestic in any state. * Convenience/Burden Business that are starting up commonly pick this type of business because of the losses endured. There is a rotary of paper work and the meetings are very inconvenient. Liability Limited Company Each member owns his or hers amount of shares according to their contributions. * Liability An LLC functions much like a corporation. Its members are unlimited liable. * Taxation An LLC has a pass through taxation and only the shareholders are taxed individually. * Continuity/Longevity There is a 50% rule in a LLC .If a member owning more than 50% of the business leaves or dies the LLC will end. except if a member owning less than 50% of the business the business will continue. * Control There is two types , member managed and managed managed . * Profit Retention bread are distributed among members according to their stake. * Location Most states allow an LLC . Different paperwork is essential in different states. * Convenience A LLC may federally be classified as a sole-proprietorship, partne rship, or corporation for tax purposes. mixture can be selected or a default may apply.