Section 3 Ent 300 revision

Section 3 Ent 300 revision - Ramiz Fakhouri Greg Johnson...

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Ramiz Fakhouri Greg Johnson Michael Stedronsky Victoire Taillet Legal and Financial Risk of Startups Professor Moker 3/22/2011 Group Project: Part 3 Choice of Business Entity: Subchapter-Corporation Analysis: The formation of an S-Corp protects individual shareholders from legal pursuit in the instance of a lawsuit or in bankruptcy. We wanted to stay protected on the individual level because of foreseen liabilities, i.e. a small child choking on a piece of our product or a lack of sales leading into bankruptcy. We wanted to eliminate as much taxation as possible in order to keep up a strong equity base within the company. The S-Corp itself is not taxed; instead the shareholders are taxed at their individual rate on their individual tax return. The S-Corp provides the shareholders with the ability to choose officers who will manage and control the business. Because we all have specific expertise in different areas of the business and
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  • Spring '11
  • Hannah
  • Shareholders, Taxation in the United States, individual shareholders, initial shareholders, Victoire Taillet Legal, Ramiz Fakhouri Greg

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Section 3 Ent 300 revision - Ramiz Fakhouri Greg Johnson...

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