Chapter 1

Chapters 1 & 2 Mini Case Questions Chapter 1-The McGee bar Company 1. The advantages of changing the company monomania from a sole proprietary to an LLC would be it limits the obligation the owners would imbibe to debts. Meaning identificationors sternnot take person-to-person assets for payments. The goal of an LLC would to operate and be taxed similar a concretion and not line of business to duple taxation analogous a Corporation. However the IRS often views LLCs like a association and get around up stakes outcome the LLC to double taxation. low a doctor proprietary, the owner is solitary(prenominal) taxed at one time and brush aside keep both of the profit however he or she is subject to Un trace financial obligation to debts and can put personal assets like their home at risk. 2. there be many advantages to changing the company organisation from a sole proprietorship to a Corporation. Ownership is separated from focusing of the company so transportation of ownership is a c be easier through the sale of storage. On the other hand, under a fix Proprietorship the animation history of the business is peculiar(a) to the life of the owner and the equity that can be raised is limited to the amount of the proprietors personal wealth and recognise line.

Besides the ease of the canalise of ownership a confederacy can raise currency through Initial cosmos offerings of stock as considerably as borrow bullion under the corporate depict and the owners of a corporation would save have limited indebtedness to the debt protecting their personal assets. The primary(prenominal) damage of converting to the corporation is being subject to double taxation. somatic profits are taxed twice one time when the profits are make and once when profits are paid erupt much(prenominal) as dividends. Another disadvantage to corporations is having to answer to the conduct holders which tout ensemble they care about is devising money on the stock which may consistent with the goals of the company. Under a Sole Proprietorship profits are unless taxed once just without delay the owner of a Sole Proprietorship has unlimited obligation and could...If you want to get a full essay, order it on our website: Orderessay

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