By taking a look into the four types of business organizations a determination of which type of ownership best suits this business Other Popular Essays. The code needs to be included on a customs declaration form for all of the shipments to China.
The built-in stock structure of a corporation makes it attractive to investors.
Finally, there is the corporation. Tax Consideration The sole proprietorship any income to the business is treated as income to the business owner and all income is reported on individual tax return, and is taxed in the year it is received.
For example, there are the initial formation fees, filing fees and annual state fees. In company form a continuity of life, it has the power to exist forever and, therefore, is unaffected by the death of an owner or manager or by the transfer of ownership interests.
Since decisions are shared, disagreements can occur.
This feature is known as limited liability; that is, their obligation is limited to the amount, if any, unpaid on their shares. The main advantage of a partnership over a sole proprietorship is that the partnership combines the skills, talents, and knowledge of two or more people, and all partners have equal rights in the management of the partnership business The main disadvantages of partnership are partnership is characterized by unlimited liability.