Chapter 32 fin 3055

Chapter 32 fin 3055 - Chapter 32 Starting a business Sole proprietorship An unincorporated business owned by a single person Small low capital

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Chapter 32- Starting a business Sole proprietorship - An unincorporated business owned by a single person. Small low capital Corporations Limited liability- shareholders lose investments not assets Duration- last even if owner dies Logistics- expenses and effort to create and operate Taxes- must pay taxes and file returns Close corporation- A corporation with a small number of shareholders. Its stock is not publicly traded. Protect minority shareholder Flexibility Dispute Transfer restrictions S corporation- A corporation that is not a taxable entity -shareholders have limited liability and tax status -one class of stock -only 100 shareholders Limited liability company - An organization that has the limited liability of a corporation but is not a taxable entity -Offer limited liability and tax status Limited liability - members are not personally liable for debt of the company Tax Status - income flows through the company to the individual members, avoids double taxing General Partnership Partnership
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This note was uploaded on 08/29/2011 for the course FIN 3055 taught by Professor Cgiles during the Spring '08 term at Virginia Tech.

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Chapter 32 fin 3055 - Chapter 32 Starting a business Sole proprietorship An unincorporated business owned by a single person Small low capital

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