COMMERCE 1E03 Chapter Notes - Chapter 6: Limited Liability Partnership, Sole Proprietorship, Limited Liability
13 Apr 2016
School
Department
Course
Professor
Document Summary
Sole proprietorship: a business that is owned, and usually managed, by one person. Partnership: a legal form of business with two or more paries. Corporaion: a legal enity with authority to act and have liability separate from its owners. They must pay because of: because of a court order, because of a law, for performance under a contract, for damagers to a person or property. Another tax advantage for sole proprietors is that they can claim any business losses against other earned income. These losses would decrease the personal taxes they would need to pay: less regulaion overall proprietorships are less regulated than corporaions. As well, the administraion of a proprietorship is less costly than that of a corporaion. Disadvantages of sole proprietorships: unlimited liability the risk of personal losses unlimited liability, is the responsibility of business owners for all of the debts of the business. Tax rates are more advantageous if the business is incorporated.
