Doncouse_Jeremy_Week6 - Jeremy Doncouse MGMT303 LLC vs...

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Jeremy Doncouse MGMT303 May 31, 2009 LLC vs. other forms for my business. LLCs are the most popular choice for small to medium sized businesses when compared to corporations (Learn About LLCs, 2009). LLCs combine the personal liability protection of a corporation with the tax flexibility of a partnership. The members’ liability is limited to their investment. The advantages of an LLC are 1) limited personal liability for business-related debts, 2) owners are not required to be U.S. citizens or permanent residents, 3) record keeping is simplified because annual meetings and minutes are not required, 4) there is no double taxation as with a corporation, 5) tax treatment with the IRS can be chosen, and 6) gains and losses are reported on individual tax returns. A c-corporation is set up as its own legal entity separate from its owners. While this type of organization allows for greater protection from liabilities double taxation is applied both to the corporation and to the individuals. An s-corporation can be set up for small businesses to gain the liability protection of a
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This note was uploaded on 03/08/2011 for the course MGMT 303 taught by Professor Unknown during the Spring '09 term at Mountain State.

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Doncouse_Jeremy_Week6 - Jeremy Doncouse MGMT303 LLC vs...

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