unit 5

Question 1

why not sole proprietorship?

Answer 1

unlimited liability. not tax benefit.

Question 2

what is the best partnership?

Answer 2

Limited partnership because you have less liability, only to extento of ivestment, and no management authority

Question 3

advantage of partnership

Answer 3

Tax benefit, pas through profits and distrobutions

Question 4

corps

Answer 4

subject to double taxation unless S corp.
liability to sharholders limited
doesn’t end with death

Question 5

Professional corp.

Answer 5

professionals only,

Question 6

S corp:

Answer 6

size numbers restriction, sharholders report losses
Tax advantage pass through, no personal liability
less backstop rules

Question 7

what is best option for full time solo practitioner

Answer 7

LLC although S corp for single entrepreneur offers tax advantage, ideal for services with liability potential

Question 8

strong trademark

Answer 8

made up coined workd, arbitrary.