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