As a C-corporation the business, not the owner, would be held liable for any financial damages. Any accidents involving employees or customers would be the responsibility of the corporation to settle. Financially speaking incorporating is the best option because as a sole proprietorship the owner is currently paying a much higher tax rate versus the corporate tax rate. With the tax code being different for corporations there is better profit retention and security. The client also mentioned the issue of partnership and the selling of stock in order to expand the company.
• Income Taxes – being a sole proprietor gives the individual the option to file taxes under a separate employer identification number. The other option is to file their return normally and just fill out an IRS Schedule C to show profit or loss for the business (Smith, 2011). • Longevity/Continuity – One of the main issues of longevity in regards to sole proprietorship is that it dissolves when the owner dies so it makes it not possible to have continuity (Joseph, 2011). • Control – one of the great advantages of sole proprietorship that a person doesn’t have with a partnership or corporation is that you don’t have to answer to anyone but yourself in our decisions. You have
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
In oder to prevent this separation of powers was brought into play with a set of checks and balances that prevented the legislative, executive, and judiciary each power over the other. An example of this would be if representatives in congress became corrupt saying that everyone must fore fit there money to them, this could not happen and be prevented because the executive branch can
The values of the assets belonging to a business that is alive and well are straightforward. For example, a supply of envelopes with the company's name printed on them would be valued at their cost. This would not be the case if the company were going out of business. In that case, the envelopes would be difficult to sell because the company's name is on them. When a company is going out of business, the values of the assets usually suffer because they have to be sold under unfavorable circumstances.
Rachel Roush 8-31-11 Advanced English Period 4 Morality Paper People are selfish. It is in their nature to do what is best for them so they can survive. Some people possess more of this quality and use it outside of basic needs. For instance: Bernie Madoff. He stole millions of dollars out of people’s life savings by falsely investing the money they gave him.
Yes, Wal-Mart provides many uneducated Americans with job however it isn’t a job from which can make livable wage. Wal-Mart pays all their employees besides management minimum wage. With prices on the rise like they are today it is hard for a person to live off minimum wage which is currently 7 dollars and 25 cents in New York. Not to mention if you have kids it is virtually impossible to live off minimum wage and if you do it’s an unpleasing struggle. Another problem is that there is no growth in your field if you work at Wal-Mart.
Every corporation is created in order to make profit and provide a service or a product to the consumer.Most consumers do not understand the complexity of the products they buy and the possible harm they could cause.Since large corporations created such a product, they alone have the knowledge of how to safely dispose of their product.Therefore corporations should provide information on their products to aid the consumer to understand the possible dangers of the products they purchase and how to dispose of them safely. Last but not least, no solution is 100% effective.There will still be pollution created by the products manufactured by large corporations. Corporations should therefore provide a solution that will minimize any loss they might make in disposing the byproduct of their products, dispose their products safely and involve the consumer in the disposal procedure, in order to educate the consumer as well as informing the consumer of what to do and what not to
Andersen shunted aside accountants who failed to adapt to the firm's new direction. In their place, Andersen promoted a slicker breed who could turn modestly profitable auditing assignments into consulting gold mines. Repeatedly, Andersen rewarded those involved with the firm's most troubled clients, while guardians of the company's legacy were shown the door. The quiet dilution of standards and the rise of auditor-salesmen at Andersen are central to the scandals that have cost investors billions of dollars. Even though the leaders contended that conflicts between its auditing and consulting missions had no impact on the quality of its work but actually they do.
Organizations looking to make substantial profits could possibly be willing to push those able to pay hefty prices for organs to the top of lists causing those in need to go without and ultimately die. That situation would be a matter of business ethics and in my opinion goes against moral standards which take priority over other standards, including