Advantages:-
1. As the corporation are well known’s, so they attracts the investment for their well established names.
2. Owner can become employee of the company and can enjoy the benefits such as reduction in health fees or etc.
3. It can have various classes of shares unlike in S corporation.
Disadvantages:-
1. Fees of registration, agent fees and other legal fees which are huge in amounts have to be paid.
2. Different formalities and laws have to be followed unlike in other forms of business
3. It cannot be dissolved easily ,proper formalities and rules have to be followed in order to dissolve the firms
When a new business is started as retail store by me, I had started with my savings as sole proprietorship as I want to keep all the …show more content…
I found a friend, which may be trusted and is also interested in doing the business with me. Therefore I made him my partner and change my business in the form of partnership. Now we both will share the profit and losses equally for the whole business. It will help me in bringing new ideas in the business in addition to mine. But at the same time I will be at more risk as now I will also have to make up for all liabilities for myself and for any unpaid liability by my partner as …show more content…
The company was registered with government authorities. It increased the cost of registration, but at the same time it also provided tax benefits to each partner. Earlier each partner income was subject to tax individual rates, now the rate of the limited liability company will be fixed. The rear with this type of form of business is that the whole business will be dissolved if any one partner leaves the company for any reason.
Our team of partner decided to raise capital from general public to expand the business further of retail stores and to introduce the imported goods. We converted limited liability Company to S Corporation and got it registered at stock exchange. Now the company will have to follow certain rules and regulation of SECP and listed stock exchange and the listing has also increased the cost of maintaining information. But at the same time this form of business has made it sure that the assets of the company may not be settled for payment of debts. In this way all assets have been
1. As the corporation are well known’s, so they attracts the investment for their well established names.
2. Owner can become employee of the company and can enjoy the benefits such as reduction in health fees or etc.
3. It can have various classes of shares unlike in S corporation.
Disadvantages:-
1. Fees of registration, agent fees and other legal fees which are huge in amounts have to be paid.
2. Different formalities and laws have to be followed unlike in other forms of business
3. It cannot be dissolved easily ,proper formalities and rules have to be followed in order to dissolve the firms
When a new business is started as retail store by me, I had started with my savings as sole proprietorship as I want to keep all the …show more content…
I found a friend, which may be trusted and is also interested in doing the business with me. Therefore I made him my partner and change my business in the form of partnership. Now we both will share the profit and losses equally for the whole business. It will help me in bringing new ideas in the business in addition to mine. But at the same time I will be at more risk as now I will also have to make up for all liabilities for myself and for any unpaid liability by my partner as …show more content…
The company was registered with government authorities. It increased the cost of registration, but at the same time it also provided tax benefits to each partner. Earlier each partner income was subject to tax individual rates, now the rate of the limited liability company will be fixed. The rear with this type of form of business is that the whole business will be dissolved if any one partner leaves the company for any reason.
Our team of partner decided to raise capital from general public to expand the business further of retail stores and to introduce the imported goods. We converted limited liability Company to S Corporation and got it registered at stock exchange. Now the company will have to follow certain rules and regulation of SECP and listed stock exchange and the listing has also increased the cost of maintaining information. But at the same time this form of business has made it sure that the assets of the company may not be settled for payment of debts. In this way all assets have been