BUS-294 Lecture Notes - Lecture 17: Fiduciary, Limited Partnership, Double Taxation
23 Sep 2020
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Sole proprietorship: anytime one person gets involved and starts business on their own: Any individual who engages in a business without forming a separate legal entity. Sole proprietor receives all of the profits. Easier to start business and less costly. Greater flexibility, as sole proprietor makes all decisions. No double taxation (sole proprietor taxed on all income earned) File a schedule c: you pay regular tax and extra 15. 53% which is the self employment tax. All income/losses are reported by individual on their own individual income tax return. Partnerships: two or more parties to engage in business (parties include corporation) Association of two or more parties who come together to engage in business. Just start a business with more than one party. No formal formation document required to be filled. Essential elements: intent to form the partnership. Have joint control and ownership of the business itself. Sharing liability: allows proportionate sharing of profits and losses.
