Marvin is planning to open a fabric dyeing business. He plans to do large scale dyeing of both fabric bolts and ready-to-wear garments. The source of business will be garment makers and cleaners. He has worked in this part of the fashion industry and knows how much capital he will need to buy the equipment required for this specialized activity.
He has some cash, and he is trying to decide whether to incorporate or to form a partnership. What would you say to him about the major advantages and disadvantages of chartering a corporation rather than forming a partnership?
2007-08-26 11:03:47 · 3 answers · asked by shawnta e 1 in Business & Finance ➔ Corporations
CORPORATIONS
ADVANTAGES:
A way of raising capital....
Easy ownership transfer....
Limited liability....
Continues until terminated....
Possible tax advantage....
Optional use of sub-chapter S
DISADVANTAGES:
Incorporation costs-Legal fees....
Charter restrictions....
Legal requirements-Reports, records....
More government control....
Franchise tax....
Profits taxed twice
PARTNERSHIPS
ADVANTAGES:
Not very difficult to form....
A method of raising capital....
Partners are boss....
Abilities are complemented
DISADVANTAGES:
Finding suitable partners....
Disagreements....
Partnership agreement-Legal fees....
Authority of partners undefined....
Unlimited liability....
Difficult to dissolve....
Terminates with death....
Profits shared
2007-08-26 15:22:47 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Roughly 80. And about 12 - 15 TC tags. But I still won't leave lol. Sorry about your account :) Edit: magley now, too? These report monkeys are disgusting.
2016-05-18 21:12:05 · answer #2 · answered by carmelita 3 · 0⤊ 0⤋
Research corporation on the Internet and find you homework answer that way.
2007-08-26 11:27:13 · answer #3 · answered by magnolia 5 · 0⤊ 1⤋