Question

Individuals who are sole proprietors or who have formed single member LLCs report business income on...

Individuals who are sole proprietors or who have formed single member LLCs report business income on Schedule C of Form 1040. Please use the IRS website as your source of research and provide us with information as to why sole proprietors would benefit from organizing their businesses as single member LLCs. Please let us know if there are any disadvantages to this form of business organization.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The main benefit of single member LLC over sole proprietorship is the concept of limited liability. In case of an LLC, the shareholder is not personally liable for the debts of the business. The extent of his/her liability is the amount of equity that the shareholder has in the business, which means that he/she can't be held accountable for any additional debt and operating liabilities that the company has.

The major disadvantage is increased paperwork and hassle. LLCs are required to publish many documents such as Articles of association and annual reports which is not required in case of a sole proprietorship.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. All of the following are characteristics associated with a sole proprietorship, EXCEPT: a. income and...
1. All of the following are characteristics associated with a sole proprietorship, EXCEPT: a. income and expense items are reported on Schedule C b. the owner cannot report passive losses on real estate investments on Schedule D c.​once calculated, its net income is reported on Form 1040 d.​the owner must pay self-employment taxes to fund both the Social Security and Medicare systems 2.​A sole proprietor is fully liable for the debts and obligations of the business. (True/False). 3.​Each partner in...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Develop a 2018 individual tax return (with all required forms and supporting schedules) for Rob and...
Develop a 2018 individual tax return (with all required forms and supporting schedules) for Rob and Laura Petrie that is both professional in appearance and technically correct. The use of tax software or a professional tax preparer to complete this project is prohibited. You can access fill-in forms (in pdf format) on the IRS website (www.irs.gov) by clicking on “More” on the left side of the homepage in the “Forms and Pubs” section. Next, click on the “Current Forms and...
Gender Bias in the Executive Suite Worldwide The Grant Thornton International Business Report (IBR) has described...
Gender Bias in the Executive Suite Worldwide The Grant Thornton International Business Report (IBR) has described itself as "a quarterly survey of business leaders from across the globe … surveying 11,500 businesses in 40 economies across the globe on an annual basis." 1 According to the 2011 IBR, the Asia Pacific region had a higher percentage (27 percent) of female chief executive officers (CEOs) than Europe and North America. Japan is the only Asia Pacific region exception. The report further...
1. The U.S. income tax was enacted by the _____ amendment to the Constitution. a.16th b.18th...
1. The U.S. income tax was enacted by the _____ amendment to the Constitution. a.16th b.18th c.2nd d.13th 2. Tax law is a tool used by government to: a.Raise revenue to run government b.Support research and development c.Further economic goals d.Encourage social objectives e.All of these choices are correct. 3. Entities required to report income to the IRS are: a.Partnerships b.Estates c.Trusts d.Corporations e.All of these choices are correct. 4. What is reported on Schedule A of Form 1040? a.Itemized...
Merck, AIDS, and Africa Written July 2001, Revised October 23, 2003 Merck was being pilloried in...
Merck, AIDS, and Africa Written July 2001, Revised October 23, 2003 Merck was being pilloried in the international press. The issue? Its role in AIDS crisis in Sub-Saharan Africa, where the price of AIDS treatments far exceeded patients’ ability to pay. The fallout from public opinion threatened not only Merck’s valued reputation, but the international system of prices and intellectual property rights on which Merck’s business was based. The Pharmaceuticals Industry The pharmaceuticals industry is known for its enormous investments...
What are your top 3 take aways from this article? Technology is no longer just for...
What are your top 3 take aways from this article? Technology is no longer just for geeks. The internet has changed everything, including marketing. Be they small, medium or large, social media grants all companies an equal playing field on which to organically reach new customers. However, success will always ride on the marketing strategy employed. Obviously, larger companies have the advantage of bigger budgets and more resources. But that doesn’t mean social media for small business owners can’t compete...
The Business Case for Agility “The battle is not always to the strongest, nor the race...
The Business Case for Agility “The battle is not always to the strongest, nor the race to the swiftest, but that’s the way to bet ’em!”  —C. Morgan Cofer In This Chapter This chapter discusses the business case for Agility, presenting six benefits for teams and the enterprise. It also describes a financial model that shows why incremental development works. Takeaways Agility is not just about the team. There are product-management, project-management, and technical issues beyond the team’s control. Lean-Agile provides...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...
QUESTION 1 1. Brianna is trying to increase her chances of being promoted to vice president...
QUESTION 1 1. Brianna is trying to increase her chances of being promoted to vice president by working to build good work relationships with other managers outside her own department. Brianna's behavior should be viewed as dysfunctional politics. functional politics. coercive power. functional influence. 2 points QUESTION 2 1. The Gingerbread Factory has a separate unit that makes their chocolate crunch cookies and another unit that is completely responsible for all operations in producing their ginger snap cookies. The Gingerbread...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT