Analyze Political, Social, Ethical, and Legal Differences Facing Both Organizations and Determine the

A corporation is a separate legal entity that possesses distinctive liabilities and privileges than that of their members or shareholders. As an investor, a corporation’s advantage is liability for their own investments especially in risky investments (Kubasek, et al., 2012, p. 760). Among the various types of corporations for Betty to select from, an S corporation is an enticing venture for new entrepreneurs given that it grants limited personal liability for debts, sharing of corporate profits, and taxation relief. Double taxation is a main disadvantage of C corporations but not for S corporations. The General Corporation Law (Corp C §§100-2319) treats S corporations similarly to partnerships for taxation purposes.

Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.

When you form a C corporation, you protect your personal assets. Anyone who sues your company can't go after you personally. You also can buy and sell stock. A corporation survives you, which means you can pass it on to your heirs. To form a C corporation, you must follow specific guidelines. If you file the correct papers, both the Internal Revenue Service and your state will recognize your company as a C corporation.

In case of breach of contract liability shall be limited or unlimited depending on the type of activity. There are five types of business organizations in the United States. These forms are sole proprietorship, a partnership, limited liability company, partnership, and limited liability company. Each of these formations business has advantages and disadvantages for the employer. There are different levels attributed to the owners and partners in each of these forms of business organization responsibility. As for the different levels of responsibility that owners and partners can help in selecting the appropriate form

In a C- Corporation the profits are divided among the stockholders. The amount of profits depend on the percentage stocked owned. For example if you owned 15 percent of the corporation’s stock, you may receive 15 percent of the profits. The more stock you own the greater the return.

LONGEVITY- A C-corporation life is potentially unlimited. The C-corp company could exist if it can continue to make a profit and cover all of the debt. If a shareholder dies or leaves the company it will not automatically lead to the dissolving of the business. The shareholders stakes are transferred to another party.

Proprietorships have three advantages: they are easy and inexpensive to form, subject to few regulations, and no corporate income taxes. The disadvantages are difficult to raise capital, unlimited liability and limited life. Partnership are similar to proprietorships in that they can be stablished relatively easily and inexpensively. The partners are generally subject to unlimited personal liability, this makes it difficult for partnerships to raise large amount of capital. Corporation also have unlimited lives, and easy transfer of ownership, limited liability and ease of raising capital to operate larger businesses. The disadvantages are double taxation, the corporation’s earnings are taxed; and then when its after-tax earnings are paid out as dividends, those earnings are taxed again as personal income to the stockholders. Limited liability reduces the risks endure by investors; and other things held constant, the lower the firm’s risk, the higher its

The first strength of a corporation business is that all partners have limited liability of the debts or obligation that the company produces. The company will still exist whether the owners or managers are deceased. When it comes to changing company’s ownership it can be done through transferring their sale of stocks to the remaining owners. On the other hand, there are some weaknesses to starting a corporation. The first weakness is the amount of time it takes to filing the documented forms such as articles of incorporation. This form must be filed with the secretary of state’s office where the business is located. Not only does the incorporator files paperwork with the state, he or she would have to organize a meeting to elect people to be on the board of directors for the company. The second weakness, are the fees involved to open the account. It could potentially cost thousands of dollars to get the company started. The third weakness is all of the business paperwork and required documents would have to be reported to the government or state that the business is located. These documented reports must be filed periodically to the

A) One of the disadvantages of incorporating a business is that the owners then become subject to liabilities in the event the firm goes bankrupt.

E. Describe the legal form of the business and indicate some of the advantages/disadvantages of the form.

A corporation is a standalone entity. There are two types of corporations, general or S Corp. Advantages of corporations consist of limited liability, capital through stock sales, attractive to employees, and receiving corporate

Liability – A corporation is a separate legal entity which means all of the liability is responsible to the corporation. Shareholders are very much so somewhat the same as limited partners they can only lose the amount of what they invested into the corporation.

As we seek outside investors, using a C corporation structure rather than an LLC has potential advantages. In structuring this way we will ensure leadership the flexibility to operate the company as needed to be successful and profitable. It will also be more appealing for outside investors to get a better idea of how the company is run and what their potential returns and exit strategy may

c) Corporation has some disadvantages such as double taxation, more regulation and difficult to start than forming sole proprietorship and partnership.

With a c corporation you have the potential to build your business to such a level that it can attract funding by becoming a public company traded on a national exchange. Which allows the company to have no restrictions on ownership, allowing them to unlimited growth potential. Another advantage of owning a c corporation is that stock proprietorship is divorced from corporate administration. An investor is entitled to economic benefits based upon number and types of dividends owned, but the investor does not have the right to manage the day to day business of the