What are the adjectives problems of funds structure?
Answers:
1. PROPRIETORSHIP
DISADVANTAGES:
Terminates near departure.
Difficult to lift possessions.
Needs diversified talent.
Unlimited liability.
High breakdown rate
2. PARTNERSHIPS
DISADVANTAGES:
Finding suitable partner.
Disagreements.
Partnership agreement-Legal fees.
Authority of partner uncertain.
Unlimited liability.
Difficult to dissolve.
Terminates near extermination.
Profits shared
3. CORPORATIONS
DISADVANTAGES:
Incorporation costs-Legal fees.
Charter restrictions.
Legal requirements-Reports, documents.
More organization control.
Franchise excise.
Profits tax twice
4. S-CORPORATIONS
DISADVANTAGES:
All profits must be distributed and tax annually
If contained by duty bracket exceeding corporate rate, an S-Corporation may not be desirable
You must incorporate
5. LIMITED LIABILITY COMPANIES
DISADVANTAGES
Annual fees are greater than for corporations
A professional service company cannot be an LLC
Restrictions on fringe benefits
LLC'S may facade risks of superior taxes and liability for business done in other states