Explore tens of thousands of sets crafted by our community.
Business Legal Structures
6
Flashcards
0/6
Sole Proprietorship
Features: One-person ownership, personal tax filing. Advantages: Full control, easy to establish. Disadvantages: Unlimited liability, difficult to raise capital.
Partnership
Features: Two or more owners, shared decision making. Advantages: Talent and resource pooling, shared responsibilities. Disadvantages: Joint liability, potential for conflict.
Corporation
Features: Separate legal entity, owned by shareholders. Advantages: Limited liability, easier capital accumulation. Disadvantages: Double taxation, complex regulations.
Limited Liability Company (LLC)
Features: Hybrid structure, limited liability protection. Advantages: Tax flexibility, reduced personal liability. Disadvantages: Variable regulations by state, potential self-employment taxes.
S Corporation
Features: Special IRS tax status, limited to 100 shareholders. Advantages: Pass-through taxation, limited liability. Disadvantages: Eligibility restrictions, rigorous formalities and regulations.
C Corporation
Features: Standard corporation, no shareholder limit. Advantages: Unlimited growth potential, enduring structure. Disadvantages: Double taxation, extensive record-keeping.
© Hypatia.Tech. 2024 All rights reserved.