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Legal Entity List of Categories
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- What's the greatest advantage of a Sole Proprietorship?
- What's the greatest advantage of being a Corporation?
- What's the greatest advantage of being a partnership?
- What's the greatest disadvantage of a Sole Proprietorship?
- What's the greatest disadvantage of a Corporation?
- What's the greatest advantage of being a S-Corporation?
- What's the greatest disadvantage of a S-Corporation?
- What's the best business entity for fringe benefits?
- What's the greatest advantage of a
Sole Proprietorship?
The greatest advantage of a Sole Proprietorship is a matter of opinion. Most financial experts would say that the greatest advantage of a Sole-Proprietorship is the owner's ability to start and manage his own retirement accounts. An owner of a Sole-Proprietorship can start a Keogh plan or a one-person 401(K) and shelter a significant amount of income from taxes.
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- What's the greatest advantage of
being a Corporation?
The greatest advantage of being a corporation is a matter of opinion. Most financial experts would say that the greatest advantage of a Corporation is the owner's built-in protection against personal liability. This means that the owner of the corporation is not necessarily responsible for all judgments and/or debts incurred by the corporation.
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- What's the greatest advantage of
being a partnership?
From the standpoint of a disability advocate, the greatest advantage is that a partnership allows for greater productivity. In a partnership, the members can better focus their skills on critical obligations such as bookkeeping and marketing. When an advocacy service fails, it's usually because of an internal weakness having to do with the execution of day-to-day business functions.
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- What's the greatest disadvantage of a Sole Proprietorship?
The owner's unlimited exposure to liability! If there are any legal judgments or debts in the company's name, the owner of the sole-proprietorship is responsible.
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- What's the greatest disadvantage of a Corporation?
The greatest disadvantage of the corporate structure is the complexity of the reporting process. Corporations must file much more complicated tax returns and usually require consultation with both a legal and tax professional.
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- What's the greatest advantage of
being a S-Corporation?
An S-Corporation provides the owner with the limited liability of a corporate shareholder. However, the owner must pay income taxes on the same basis as a sole-proprietor or partnership.
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- What's the greatest disadvantage of a S-Corporation?
A S-Corporation has fewer tax advantages when compared to a C-Corporation. Although both corporate entities provide similar liability protection, an S-Corporation offers fewer tax advantages. Income produced by an S-Corporation is also counted as personal income to the owner. This means that the owner is generally responsible for all debts created by the corporation. An S-Corporation owner can use debts created by the company to offset other income including personal income.
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- What's the best business entity for fringe benefits?
The C-Corporation hands down! Although complicated in structure with many reporting requirements, a C-Corporation has unlimited potential for manipulation of its income and resources. See your accountant or tax adviser for details.
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