Legal entities

the business, you have complete control over all decisions. Your business is not taxed separately, so it’s easy to fill the tax reporting requirements. Some disadvantages of a sole proprietorship are unlimited personal liability. Because there is no legal separation between you and your business, you can be held liable for the debts and obligations of the business. This extends to any liabilities caused by employee actions. Sole proprietors often have challenges when trying to raise money. Because you

and legal actions that the business may face. In a general partnership all partners have the ability to actively control or manage the partnership. Ultimately, each partners has “agency authority “on the partnership, which means that any partner can legally bind the partnership to a contract. Limited Partnership: this type of partnership has both general and limited partners. This partnership requires at least one general partner, who held unlimited personal liability for the debts and legal actions

of these partnerships from liability. The disadvantage is that your not able to raise money or have angel investors in a LLP. Here is one of the common ways to start a business is getting a LLC (Limited Liability Company) and it’s a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship all in one. Making another advantage is that the primary characteristic it shares with a partnership is the availability of pass-through income taxation

Under the tax law, certain tax benefits can significantly reduce a taxpayer’s regular tax amount. The alternative minimum tax (AMT) applies to taxpayers with high income by setting a limit on those benefits. It helps to ensure that those taxpayers pay at least a minimum amount of tax. The AMT is the excess of the tentative minimum tax over the regular tax. Therefore, the AMT is owed only if the tentative minimum tax is greater than the regular tax. The tentative minimum tax is figured separately

The LLC remains a limited liability company from a legal standpoint, but for tax purposes it can be treated as an S-Corp. Be sure to contact the state 's income tax agency where you plan to file your election form. Ask about the tax requirements and if they recognize elections of other entities (such as the S-Corp). Advantages of an LLC: •Limited Liability. Members are protected from personal liability for business decisions or actions of the LLC. This means that if the LLC incurs debt or is sued

As the name implies a LLC offers [10][11] protection for the owner against any personal legal cases as unlike the sole trader structure as outlined above, the owner of an LLC is considered a separate entity from the company. Therefore creditors cannot seize the owner’s personal assets such as home or car to satisfy a judgement against their business. Limited liability companies are essentially hybrid entities that combine the

legally the same entity. The company’s assets are legally the same as the owner’s personal assets. · Income Taxes: The owner of a Sole Proprietorship pays taxes in the earnings of the company as personal income. · Longevity/Continuity: Because the owner of a Sole Proprietorship and the business, are legally one and the same, when the owner of the business

responsibilities of covered entities (Jenkins, Merz & Sankar, 2005). The Rule took effect on March 26, 2013. The Rule implemented changes to HIPAA’s Privacy, Security, and Enforcement Rules mandated by HITECH, modified the Breach Notification Rule, and finalized revisions to HIPAA’s Privacy Rule to strengthen protections for genetic information. It contains a preemption provision to supersede conflicting provisions of state law. The Rule requires that covered entities and business associates modify

Sole Proprietorship A business with one owner who is responsible for all features of the business. Everything that happens in the company from the daily operation to the legal obligations are controlled by one individual. Sole Proprietorship Advantages: • Convenience - Usually the least costly to begin. Sole proprietorships are easy to start up. They entail acquiring the proper licenses and permits. Regulations very from industry, state, and county. There is no administrative configuration

James Neuner, MBA One of the most important decisions to make when one chooses to start a business is knowing the type of legal organizations to select because the decision affects many aspects of the business. What can be affected are the amount and type of paperwork required, tax payments, possible personal liability one may face, the ability to borrow money, legal obligations, and the business laws that have to be followed. Financial Accounting is a course that introduces basic concepts