ACC 100 : acc100 review.docx
Document Summary
Two different forms only: business entities and non-business entities. Business entities consist of: sole proprietorship, corporation and partnership. Business entities are organized to earn income: sole proprietorship, advantages: (1). [] decision making is informal and centered in the owner. (3). [] no qualification requirements for doing business in other states. (4). [] business profits are subject to only one tax, at the individual level, and are not subject to double tax as would be the case if the profits were realized by a c corporation. (6). [] losses are available on the owner"s personal income tax return and can offset other income (subject to the passive loss rules): disadvantages: (1). [] owner has unlimited liability for obligations and liabilities of the business. (2). [] death or disability of owner terminates business. (3). [] sale or other transfer of business requires transfer of individual assets. (4). [] no opportunity to utilize equity capital contributed by persons other than the owner. (5).