Chloe Michaels plans on opening Chloe Michaels Floral Designs. She is considering the various types of business organizations and wishes to organize her business with unlimited life and wants owners of the business to not be held personally liable for the business's debts. Additionally, Chloe wants the business to be a separate taxable entity. Which type of business organization will meet Chloe's needs best?
According to the requirements of Chloe Michaels, the type of business organization that best suits the requirements is a Corporation.
Because, a corporation has an indefinite period of life, that is, it is a going concern until it faces some severe issues to interrupt its operations and liquidate. In a coporation, the owners are separate from the business, and the corporation has a separate legal existence and the owners are not responsible for its debts. A corporation is a separate taxable entity, It should pay taxes for the income it earns.
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