QST LA 245 Study Guide - Quiz Guide: Limited Liability Company, Sole Proprietorship, General Partnership
23 Jul 2018
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La 245 quiz 3: chapters 20, 21, 22, and (cid:862)to cat(cid:272)h a trader(cid:863) do(cid:272)u(cid:373)e(cid:374)tary. Things to consider when deciding business forms: liability protection, tax treatment, ease of formation/maintenance, ability to raise capital, making a positive impact on society and the environment- for those of you interested in benefit corporations. Covered business forms: sole proprietorship, general partnership, limited liability company, regular corporation (c corporation, s corporation, close corporation, social enterprise. Sole proprietorship: an unincorporated business owned by one person (72% of all businesses, pros, can run a business without taking any formal steps. Easy and cheap to start: not required to register with the government, not required to file a separate tax return. Owner must pay personal income tax on any profit they earn, but the business itself does not pay income taxes: cons, o(cid:449)(cid:374)e(cid:396) (cid:396)espo(cid:374)si(cid:271)le fo(cid:396) all of the (cid:271)usi(cid:374)ess" de(cid:271)ts.
