BUS 1000 Lecture Notes - Lecture 8: Limited Liability Company, Sole Proprietorship, General Partnership
27 Aug 2016
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What is the nature of the business: financial, retail, professional, for profit/non profit. Forms: sole proprietorship, a business owned and operated by 1 person, there is no legal distinction between the business and the owner, you are the business, most common form of ownership in the us, advantages: e. i. Not a lot of government regulation/regulations (industry depending) e. vii. Unlimited liability: f. i. a. f. i. b. f. i. c. f. i. d. f. i. e. f. i. f. Limited in using funds from some personal accounts. Employee benefits like medical insurance are not directly deductible from business income f. i. g. a. Only partially deductible as an adjustment to income f. i. h. Who wants to loan someone when success of whole company f. i. i. depends on one person. May have a hard time finding high performers f. i. i. a. Who wants to work for someone who has no corporation behind f. ii. Over 22. 6 million sole proprietors filed tax returns in 2008 them. ****only made up 4% of net income f. ii. a.
