2. CORPORATION
Advantages
*limited liability, provided --
i) sufficient equity
ii) observe corporate formalities
*100% deduction for health insurance
*exclude 50% of gain on sale of stock (if original issue and held five years)
unavailable for business in which the principal asset is the reputation or skill of one or more employees (such as doctors, lawyers, Accountants, financial planners, and other consultants)
*take ordinary loss deduction on sale or exchange of stock, up to $50,000 ($1000,000 if filing joint return)
*exclude cost of $50,000 life insurance
*maximum pension and profit sharing
*different classes of stock
*perceived to be sophisticated form of business
*top tax bracket is lower than top individual bracket
2a. S Corporations
Advantages
*same limited liability as regular corporation
*state corporate income tax is lower than a regular corporation
*possible partial avoidance of Social Security tax
*no double taxation of income or gain from sale of business assets
*losses may be deducted personally by the shareholders in proportion to their ownership interest, subject to basis limitations
3. PARTNERSHIP
Advantages
*no double taxation of income or gain from sale of business assets
*deductions for ordinary and necessary business expenses taken by partners personally to extent of other income, subject to basis limitation
*flexible allocations of items of income and deductions
4. Limited Liability Companies
Advantages
*avoids use of limited partnership to structure deal with non-resident aliens that require special allocations or flow-through of gain and loss
*structure deals that could not be done through S Corporations due to identity or number of shareholders or single class of stock limitations
*structure deals that would be cumbersome through use of partnership having S Corporations as partners due to the large number of participants
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Merits and demerits
What are the merits and demerits of an economic system?
merits and demerits by robbin defination
what are the merits and demerits of free market economy
The merits of functional organization include more efficiency, expansion, and separation of physical and mental functions. The demerits of functional organization include conflict confusion, and lack of coordination.
What are the merits and demerits of matrix structure of organization
No way!
In centralized organizations managers are in the know. They are aware of things that are going on in the organization because they are a part of the decision process.
Merits and de merits of chemical fertilizer?
merits of motorway? merits of motorway?
what is merits and demerits of posters and advertisement? what is merits and demerits of posters and advertisement? what is merits and demerits of posters and advertisement? what is merits and demerits of posters and advertisement? what is merits and demerits of posters and advertisement? what is merits and demerits of posters and advertisement? what is merits and demerits of posters and advertisement? what is merits and demerits of posters and advertisement? what is merits and demerits of posters and advertisement?
Merits of Management AccountingManagement Accounting helps in Budgeting by classifying and calculating costs and estimating the costs and revenues for the future. Management Accounting plays a major role in the internal decision making for the organization. Management accountants also find ways to manage the organization's resources in a better way by doing cost savings. Management Accounting makes it possible for the management to understand the needs of the organization and those of the different departments.Using Management Accounting is very important because it helps in managing the internal operations of an organization. Just as Financial accounting is vital for external investors and creditors, Management Accounting is important for the internal managers.
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Merits: 1. Its new and its different :) 2. Its more complicated and hence more convincing to people. 3. Its an option anyway Demerits 1. It suks as it is complicated 2. It adds few more pages to your book which makes it costlier and heavier.
I am not certain that the described activity merits my attention. Do your merits outweigh your demerits?
hotel merits and demerits