Selecting A Form Of Entity For Doing Business - 1220 Words

Selecting a form of entity for doing business. Tax payers, who are business owners, including the self-employed, have choices regarding how to set up their entity for tax purposes. Generally, the following options are available for tax payers: Sole Proprietorship Single Member Limited Liability Company â€Å"S† Corporation â€Å"C† Corporation Sole Proprietorships do not file any documents, including annual reports, with the Secretary of State. Accordingly, they do not have legal or creditor protection. Sole Proprietorships prepare Schedule C as part of their Individual Income Tax returns, with exception to farmers who must file Schedule F. The Schedule C is the most simplistic form for tax filing purposes, when it comes to business. Sole Proprietors may need to file Schedule SE. Generally, self-employed business owners can set up fringe benefits (i.e. self-employed health insurance deduction and retirement plan) for their business. Self-employed health insurance and retirement deductions are reported on page 1 of the individual income tax form as an adjustment to gross income. Discrimination tests have to be met for the self-employed health insurance if the sole proprietorship has employees. Under the family member s rule, as stated in Circular E of the IRS: â€Å"Child employed by parents. Payments for the services of a child under age 18 who works for his or her parent in a trade or business aren t subject to social security and Medicare taxes if the trade or business is aShow MoreRelatedInvestigating The Failure Of Fraud Detection982 Words   |  4 Pagesstakeholders. Most fraudulent schemes can be avoided with basic internal controls and effective audits and oversight; however, they remain undetected due to following factors- Understanding the entity: First and foremost reason for the failure of fraud detection is the lack of knowledge or understanding of an entity they are auditing. If one does not understand the industry, company, transactions, or accounting systems, it is difficult to know what areas require further inspection and what types of fraudulentRead MoreThe Case Of The Smithson Family1250 Words   |  5 PagesIntroduction The memo that was constructed for the Smithson family will provide an in-depth summary regarding the direction the family should go into starting their business. Within this memo a detailed analysis will provide a layout to expand their company globally and continue to grow at a steadfast pace. The seriousness of the widget invention that was constructed is revolutionary to say the least. The primary concern that Gloria Smithson has expressed is in regards to the personal liabilitiesRead MoreEssay On Starting A Business1413 Words   |  6 PagesIt has long been one of my goals to open and successfully operate a business in the field of managing information for firms and entities across the nation. The idea first developed when I realized that corporations are constantly gaining immense amounts of information every year with difficult means of managing it. The task will be a lengthy process and consist of many downfalls and cooperation of many team members to produce the desired out come and effect on the market. Many elements are combinedRead MoreLit 1 Task 1 and 22484 Words   |  10 PagesPart A Sole Proprietorship: A type of business that is owned by and run by one person with no legal difference between the business and the owner. It is easy to form with no cost or time to initiate. It gives the owner the ability to self-govern the business. There are drawbacks; only one owner can be established not allowing a partner. Also, unlimited liability puts the owner’s personal assets in jeopardy with the creditors.  · LIABILITY – The owner is held responsible for all debts and expensesRead MoreWhy Would The Owners Of Lakeside1657 Words   |  7 PagesAuditing in general, is necessary because of the existence of Information risk or the risk of unreliable information. Owners of lakeside may own the company but they are not closely involved in managing the business with the exception of Rogers, the only owner involved actively in the business’ day to day operations. So, an independent audit for non-managing owners provides a trusted second opinion on lakeside’s financial statements and, in turn, gives some, insight as to how well it is being runRead MoreWhat Merger Is The Merger For The Company Of The Southwest Airlines Acquiring The Airtran Airways Essay1390 Words   |  6 PagesIntroduction A merger is a form of business that is made up of two or more businesses operating in the same industry coming together to better their services. One of the recent mergers that have happened is that of the Southwest Airlines acquiring the AirTran Airways for several reasons. On making this important acquisition, it is very clear that the operations of the services offered by the airline will expand to different parts of the world with some changes being needed in the parent airlinesRead MoreManagement Skills Need For The Business Successful And Profitable At The Global Platform1638 Words   |  7 Pagesthe success of the business and are the key elements for making the healthy and desirable workplace. Business is an entity with several numbers of internal and external customers and these customers are effectively managed via effective management skills. Thus, management skills is about knowing and doing, whereby conceptual rules of management is easy to understand but it is the ca pability of the manager to apply appropriately in different situation so as to make the business successful and profitableRead MoreSmall Business Essays1489 Words   |  6 Pagesbusinesses. A new business is established to create a good or service that no other businesses have ever created or simply a product of higher quality than existing products, with the purpose of meeting customers’ needs and earning profits. Due to the technological advances at the present time, starting and operating a new business is less laborious. Nevertheless, would-be entrepreneurs should be familiar with the proper approaches to start their businesses. The first step to starting a business is to createRead MoreOperating A Local Escort Business1526 Words   |  7 PagesOperating a local escort business means we facilitate connections among travelers and the hottest escorts Las Vegas has to offer. After immersing oneself into this thrilling environment, craving even more rapture is common. Single men and daring couples have been known to be more than a little curious about outcall striptease shows. People in Las Vegas call girls who perform such shows, escorts or room service girls. Escort businesses are also referred to as outcall entertainment referral servicesRead MoreCorporate Social Responsibility ( Csr )1636 Words   |  7 PagesSocial Responsibility (CSR) has gained a reasonable reorganization in the world of business. Organizations are now voluntarily putting their money in the public cause’s way more than they are required or forced by the law and proud present their doing their annual reports CSR is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical