ANSWER:
-- Double Taxation: The LLCs owners receive more of their profits in company as compared to the shareholders as they can avoid the "double taxation" of corporate profits
-- Pass Through' Taxation: LLCs enjoy "pass through" taxation which indicates that the company itself pays no taxes and rather it passes the profits and losses through the proportion to their shares of equity to its owners. In corporations the shareholders do not get any personal financial relief from any losses of the company
-- Less Paperwork: Compared to corporation LLCs has less paperwork in it's formation. Also LLCs can create rules that govern the business
-- Flexibility: In LLCs the government doesn't get too indulged in the inner workings. The can sell and buy their ownership, restructure management, or change and they have no requirement to report it to their state. They are not regulated in an approach the corporations are
-- Flexible number of members: LLC has a flexible structure for management however it is strict in a corporation
5 reasons why limited liability companies does not want to be treated like a corporation ?
True or False: A limited liability company (LLC) is taxed like a partnership but provides limited liability for itsowners, similar to a corporation.
In which of the following ways is a limited liability company like a corporation? 0 A. It was created and developed first in the United States. O B. It can choose to be considered a partnership for tax purposes. O C. Its owners' liability is restricted to their investment. 0 D. It is directly managed by the owners.
What is a Limited Liability Company, and how does it differ from a S-Corporation?
In a short paragraph explain why limited liability companies have become the most popular business entity within the United States.
Give 5 reasons why companies opt for market segmentation
Consider each of the following forms of business: sole proprietorship, partnership, limited liability partnership, limited liability company, S corporation, franchise, and C corporation. Choose THREE of these forms, and develop a scenario in which each of these forms of business would be the preferred form. For each scenario, justify why the corresponding business form is preferred.
An a result of TCJA the rules for like-kind exchange were changed . The law affects: A. Individuals C Corporation , S corporation,partnerships (general or limited ) limited liability companies trusts and any other taxpaying entity. B. C corporations , S corporations ,partnerships (general or limited ,limited liability companies, trusts but not corporations C. individuals S corporations ,partnership(general or limited) limited liability companies,trusts but not corporations. D. Individuals S corporations . S corporation, partnership ( general or limited ) limited...
Extra Exercise: MCQ1 Is the concept of a company the same as limited liability? Choose the most appropriate response. a. Every entity created under legislation has automatic separate legal entity from its members and limited liability for its managers; this has always been the case b. Yes, every company has limited liability. The concept of a separate legal entity means that a company has limited liability for its debts and obligations c. The ability to create a separate legal entity...
In a like-kind exchange relief from a liability is treated as boot true or false
Which one of the following statements is true? a. A sole proprietor has limited liability. b. A disadvantage of a sole proprietorship is double taxation. c. In a general partnership, partners face limited liability d. A disadvantage of a corporation is that complex management structure lead to slower and expensive decision-making. Which of the following is not a institutional shareholder of a corporation? a. Individual person. b. Corporation. c. Securities companies. d. Financial intermediary.