If they operate under a factious business name or sell goods or services requiring a license then the business files for licensing according to the nature of the business. This can be a sellers permit or a professional license. Advantages: Sole Proprietorships essentially have no formalities. Taxation is fairly simple, meaning that many of these businesses do not file separate business tax returns because they are not required to. The sole proprietor has the advantage of maintaining complete control over his or her business.
In this example, Owen will be the only owner and since he wants to have employees under this business form he is allowed to hire employees whereas if he was thinking of an S- Corporation he could not have any employees. Some other benefits of sole proprietorship: * Filing taxes involves a simple self-employment income tax form since all the profits and losses are pass on to the owner or sole proprietor * No high or any fees or registration requirements- since Owen is investing all his personal savings on this new business not having start-up fees is beneficial. * No payroll set-up * Net earnings of the business are not subject to corporate income taxes but are taxed only as personal income. Some of the disadvantages of sole proprietorship are: * The proprietor is subject to unlimited personal liability for the debts of the business. If Owen fails to pay his business debts, creditors will come
Greenwich did not do any “due diligence” which is the reason for getting sued because they did not check and that’s how Madoff was able to get away with the scheme. Greenwich should have seen that he was using his own money while he was pocketing the money from investors and they could have stopped him. 8. The SEC did not act upon the information by Markopolos because Madoff had a good reputation at the SEC and had many connections with the people within the SEC, so they didn’t even bother conducting an investigation. 9.
However, Block argument that dissolution of the firm releases him from any liability in malpractice occurring after dissolution, but dissolution does not discharge anyone from obligations previous to the dissolution, only to obligations happen after the dissolution. His argument can be effective if he is in normal business relationships between partnerships and third persons. However, the court stated that the relationship between a law partnership and its clients is not a normal business relationship; it is a trust relationship and requires a high degree of reliability and good
According the legal dictionary an incorporated company is formed with the approval from the state in which the corporation is being formed. This corporation is an artificial person, that is someone who does not exist. The organization can sue and be sued, that is unless it is non-profit. A corporation can sell shares of stock if needed. An corporations liability is limited to its assects, so the owner or the shareholders are protected from personal claims unless they commit fraud.
It would be my advice for Mr. Jones to not buy the stock because of the liability of current and future tax obligations which Mr. Jones would incur from the purchase of the stock. Since the tax identity of Smithon corporation would have not ceased, it is not a favorable purchase for Mr. Jones. Ina a case where the tax identity of a firm does not cease not to exist, the tax aspects will remain the same and so will the existing tax schedule. So in this case it would mean that Mr. Jones would not be allowed to change the financial year to end on December 31. The buyer in cases where he can’t change the legal entity is in a non -benefice situation, the buyer is limited to follow the current tax basis on the company’s assets even if the buyer paid more for the
Delaware Corporation Law Have you ever wonder why majority of the fortune 500 companies has chosen to incorporate their business in Delaware? Well it’s not because of taxes, although Delaware like every other state tries to keep its corporate tax rates low and competitive. There are a few advantages why companies decided to incorporate in Delaware, for instance; • As a state that welcomes corporations with open arms, Delaware provides such financial incentives for corporations as freedom from personal property tax, intangible property tax and even sales tax. A bigger incentive is the absence of a corporate income tax, provided the corporation is not doing business within the state. Furthermore, Delaware corporations pay
A monopoly is where you can set prices almost everywhere you want, and there is no other competition. This is referred to as predatory pricing, where companies charge a price lower than production costs. These companies believe their competitors can’t afford the loses. Cable companies don’t worry about competition due to the protection they enjoy from the government. The cable companies get away with this by claiming they do not have competition, cities award them the contract by providing coverage, even though they may not have the lowest price.
Corporate form The main advantage in the corporate form is the limited liability. The corporation is not liable for the losses of the shareholders or the employees losing jobs in the company. Scenario The setup of a semiconductor corporation can be seen as a corporate form of business. They have limited liability to debts and obligations, unlike other forms of business. In this it helps in the investment of the huge amount of money.
Business Research Ethics Paper Chili Cruz RES 351 July 28, 2014 Professor Business Research Ethics The company I chose to write about is Citigroup Inc. Citigroup Inc, is a company, which focuses on investing and providing financial advice to consumers, as well as the financial corporate world. For the most part the services they provide can be identified as having three main types of business focuses. One of the business divisions is Global Consumer, the other is directed into the Corporate and Investment Banking, third and last is Global Wealth Management services. Moreover, Citigroup has prided themselves with a 200 year-old legacy of being successful in leading in the financial world. Additionally, Citigroup has successfully branched out into owning other branches.