Business Forms

Business Forms - 9-19-07: Business Forms 1. Business Form...

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Unformatted text preview: 9-19-07: Business Forms 1. Business Form a. Legal entity of how to run business, businesses expand every year by 3% b. Sole proprietorship account for 71% of businesses but corporations make most money from revenue c. Trade-off between liability and taxes 2. Unlimited Liability a. Fully responsible, can take personal assets i. Bicycle example of Bike World and your own shop 3. Limited Liability a. Can only take what you invested in the beginning 4. Sole proprietorship a. $200,000 – profit * .25 - taxes = $50,000 taxes 5. Partnership – 50% a. $200,000 – profit i. Partner 1: $100,000 – profit * .25 - taxes = $25,000 ii. Partner 2: $100,000 – profit * .18 - taxes = $18,000 iii. Total = $43,000 iv. Personal situation will affect taxes 6. Corporation – Double Taxation comes into play a. $200,000 – profit * .15 - taxes = $30,000 taxes b. Profit of $170,000 after 1st tax i. Taxes to the share holders which can range from different percents ...
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This note was uploaded on 11/01/2010 for the course BCOR 1010 at Colorado.

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