Asked by Jordan Coleman on Feb 18, 2024
Verified
Pick two of the legal structures from the ones covered in the text and compare the advantages and disadvantages.
S Corporation
A type of corporation that is eligible for, and elects, special taxation status.
- Analyzing the benefits and drawbacks of specific legal structures
- Evaluating the suitability of legal structures for different business needs
- Understanding the advantages and disadvantages of different legal structures
Verified Answer
KP
Kimie PassagliaFeb 18, 2024
Final Answer :
The sole proprietorship is simplest and least expensive but provides no liability protections.A general partnership requires a separate legal document and one or more partners.This type of entity provides some limited protection from liabilities and profits are taxed at the individual level.A limited liability company provides more protection from liabilities and,similar to the partnership,is taxed at the individual level.Corporations have more protection from liabilities but are also subject to double taxation-at the corporate level and individual level.
Learning Objectives
- Analyzing the benefits and drawbacks of specific legal structures
- Evaluating the suitability of legal structures for different business needs
- Understanding the advantages and disadvantages of different legal structures
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