BU111 Study Guide - Final Guide: Sole Proprietorship, Privately Held Company, Tax Advantage
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BU111 Full Course Notes
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Document Summary
Unincorporated versus incorporated businesses: legalistic distinction. Taxation of different forms of ownership: taxation of unincorporated businesses. Profits taxed on progressive personal tax rates: taxation of corporations. When to incorporate from a tax perspective. Partnerships: the partnership agreement, advantages and disadvantages, types of partners. Corporations: definition: formation of a corporation. Federal versus provincial corporation: public corporation vs. private. Distinction between unincorporated and incorporated businesses is legalistic in nature. Its legalistic distinction will affect the personal liability of the owners: will also affect the taxation of the business. These 2 factors are the most crucial factors to consider which form of business an owner/owners will want to adopt. Joe has a business, can easily differentiate between his personal assets (house, car) and his business assets (store, equipment). If joe"s business in trouble and insufficient to pay the claims of creditors, joe has to pay creditors by selling off his personal assets such as house, car etc.
