Advantages And Disadvantages Of A Company

827 Words 4 Pages
Corporation is a business separated from its owners. Corporations can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets and pay taxes. Advantages of a corporation is it is a limited liability that protects owners from losing more than they invest. The business can achieve large sizes due to marketability of stocks. It receives certain tax advantages. Has greater access to financial resources allows growth within the company. Attracts employees with specialized skills which can help the business. Disadvantages of a corporation is double taxation because both cooperate profits and dividends paid to owners are taxed, although the dividends are taxed at a reduced rate. It is more expensive and complex to form a …show more content…
Each partner contributes to all aspects of the business, including money, property, labor or skill, and in return they share the profits and losses of the business. Advantages of a partnership is it is more expertise and managerial skill available. Has a relatively low organizational costs income taxation as personal income of partner’s. It has fundraising abilities that are enhanced by more owners. Disadvantages of a partnership is that owners have unlimited liability; may have to cover debts of others and it is less financially sound. It may dissolve or must reorganize when a partner dies. Difficult to liquidate or terminate the business. Potential for disagreements or conflicts between partners. Partnerships are difficult to achieve large scale …show more content…
The differences between corporation and partnership is shareholders, self-employment tax savings, make raising money easier, transferring the ownership interests, and continuous life. The differences between corporation and sole proprietorship is cost in establishing, minimal formalities, and liability for unemployment insurance. The differences between corporation and s-corporation is the taxation, corporate ownership, and corporation election. The differences between limited liability company and partnership is liability, formation, ownership, structure, and lifespan. The differences between limited liability company and sole proprietorship is raising money for a business, ease of ownership transfer, cost of setup, formal organization, and separate records. The differences between limited liability company and s-corporation is management, transferability to ownership, and self-employment taxes. The differences between partnership and sole proprietorship is decisions, liability, conflicts, and continuity. The differences between partnership and s-corporation is formation, structure flexibility, personal liability, and tax treatment. The differences between sole proprietorship and s-corporation is liability concerns and tax

Related Documents