Law Corporation free essay sample

This does not mean that he/she cannot hire employees and/or have someone ‘manage’ the business. The final line is though; the owners’ decisions are the final word. | A sole proprietorship dissolves upon the owners’ death or selling of the business. Even if the spouse or other person is given rights to operate the business after the owners’ death, a new sole proprietorship has legally been started. | Owners of sole proprietorships are going to have a difficult time acquiring capital for the business. Such as a member deciding they do not want to be in the company any longer| Limited liability companies have a great deal of access for capital. An LLC has more of a chance because of the owner’s personal property not being in the equation. | The LLC does not pay taxes itself. The taxes are paid through the partners of the entity. The basis is the investment percentage that each owner has is what percentage each owner reports. We will write a custom essay sample on Law Corporation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page | C Corporation| There can be numerous owners as the owners are considered as shareholders. Usually the individual who holds the majority of the shares would be considered the individual who has control and therefore could be considered as the only owner. The key benefit of it is that the business owners and their assets are protected from liability for business debts and judgments. Shareholders of an S corporation may consist of estates and trusts, which is not allowable for a sole proprietorship. Owners of an S corporation must be citizens or resident aliens of the United States. | When you enter into business debt with your S corporation, you do not have personal liability for it. One of the advantages of incorporating your business is that it provides you with limited personal liability. When you incorporate your business, it creates a separate business entity. Because of this, debts accumulated in the name of the business are not your own debts. This means that creditors cannot file lawsuits against you personally or come after your assets. | | No. The majority of the companys shareholders must agree to dissolve an S corporation.