2007-08-15 04:03:33 · 1 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
with references if possible
2007-08-15 04:04:05 · update #1
1. PROPRIETORSHIP
DISADVANTAGES:
Terminates with death....
Difficult to raise capital....
Needs diversified talent....
Unlimited liability....
High failure rate
2. PARTNERSHIPS
DISADVANTAGES:
Finding suitable partners....
Disagreements....
Partnership agreement-Legal fees....
Authority of partners undefined....
Unlimited liability....
Difficult to dissolve....
Terminates with death....
Profits shared
3. CORPORATIONS
DISADVANTAGES:
Incorporation costs-Legal fees....
Charter restrictions....
Legal requirements-Reports, records....
More government control....
Franchise tax....
Profits taxed twice
4. S-CORPORATIONS
DISADVANTAGES:
All profits must be distributed and taxed annually
If in tax bracket exceeding corporate rate, an S-Corporation may not be desirable
You must incorporate
5. LIMITED LIABILITY COMPANIES
DISADVANTAGES
Annual fees are greater than for corporations
A professional service company cannot be an LLC
Restrictions on fringe benefits
LLC'S may face risks of higher taxes and liability for business done in other states
2007-08-15 04:22:54 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋