Wednesday, May 1, 2019
Car Wash Full Service in Kapolei Essay Example | Topics and Well Written Essays - 1250 words
Car airstream Full Service in Kapolei - Essay ExampleAdvantages C pecks have low risks since the government is account subject for its audits and tax returns The owners (shareholders) have limited liabilities to the line of merchandise debts C Corporation benefits from writing-off of debts and business expenses C corporations are able to raise high capitals through sale of shares to different investors The majority shareholders or business owners benefit from a variety of stocks sold by the corporation Disadvantages Slow conclusion making since all shareholders must be consulted when making a major business decision through the annual general meeting air owners are not directly involved in trail the business Not easy to activate since, the corporation needs to comply with strict legal requirements from the government S Corporation S corporation is considered a regular corporation with less than 100 business owners (shareholders). The corporation passes its net income and loss es to the shareholders as stipulated under the Internal Revenue Code, Chapter 1 (Ogus, 1994). Advantages Shareholders have limited liabilities to the companys debts. Thus, shareholders assets cannot be sold to pay the corporations debts in case of bankruptcy. S corporations are exempted from paying(a) federal taxes since losses and profits are passed through shareholders tax reports Shareholders can become employees of the corporation and introduce tax-free salaries The credibility associated with the business makes it possible for the business to attract high calibre employees and customers Disadvantages Formation is dear(predicate) and time consuming due to the legal and taxation formalities that the business is expected to comply with to begin with been... It is stated in the essay that when starting a new business, it is necessary to make objective decisions concerning the structure of the proposed business. Most business owners consider the significance of financial decisio n over other factors that affect the business. Although conceivable financial decision determines the sustainability of the business, a business owner need to consider other factors that would affect the business in the long-term. The form of business ownership, that was a main focus of the essay and is a significant decision that investors ought to make before settling into their business. Sole proprietorship, partnership, C Corporation and S corporation are the staple forms of business ownership. After considering the different forms of business ownership, the researcher settled for a partnership as the virtually appropriate form of bushiness. The choice for partnership was determined by the pros and cons of other forms of business ownership and operable finances. The researcher also made his choice based on cost benefit analysis of running the business as a corporation or a sole proprietorship. Forming a partnership eliminated the aspect of competition that would arise if eac h partner decided to set his own business. This factor would give the aggroup an opportunity to concentrate on their services and customers. The team eventually ruled out both the S and C corporations due to the rigorous legal requirements and large starting capital required for the business analyzed.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment