Starting a Business

Page 2

Starting a Business

1. Ease in formation 2. Low start-up costs 3. Additional sources of capital 4. Broader management base

10/18/11 12:12 PM

By typing " agree" into the box you are confirming that you wish to send your information to the Law Office of Kenneth Vercammen

Disadvantages 1. Unlimited personal liability 2. Lack of continuity 3. Divided authority 4. Hard to find suitable partners

Change Image Write the characters in the image above

Corporation Advantages

Submit

Clear

1. Limited liability 2. Ownership is transferable 3. Continuous existence 4. Legal entity Disadvantages

Kenneth Vercammen was the Middlesex County Bar Municipal 1. Closely regulated 2. Most expensive to organize 3. Court Attorney of the Year Difficult to liquidate investment Corporation Advantages 1. Tax deferral @ l5% for first $50,000 of income 2. Medical Insurance is deductible 3. Group term life insurance is deductible Disadvantages 1. Maximum tax rate is 34% 2. Double taxation 3. Favorable liquidation tax treatment is no longer available resulting in double taxation. S Corporation Advantages 1. Single level of federal taxation 2. Single level of taxation upon sale or liquidation of business Disadvantages 1. Medical and group term life insurance is not deductible Limited Liability Companies http://www.njlaws.com/starting_your_own_business.html?id=1123&a=

Page 2 of 6


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.