Why a sole proprietorship is the easiest form of business

business

It can be done by changing the legal form of my business to a corporation where the owner and the business will be treated as separate entities in the legal framework.

 

Question Two

 

A limited liability company has several advantages compared to a partnership and S-corporation. First, Limited Liability Company has protected assets and therefore, the owners or shareholder's assets cannot be pursued in the case of a lawsuit, unlike partnerships. Next, the LLC faces fewer state-imposed annual requirements and ongoing procedural formalities than S-corporations. In addition to that, LLC enjoys fewer restrictions regarding who is eligible to become an LLC member and also the number of owners is flexible, unlike S-corporations where it has only one class of stock.

 

Question Three

 

The term ‘nonprofit’ refers to groups or organization that come together and desire to achieve a mission but not to make a profit. According to (Bagley and Dauchy 659), the term ‘nonprofit’ does not indicate any specific type of legal structure and therefore if the group incorporates, it becomes a nonprofit corporation, and if not, it is an unincorporated nonprofit association. Therefore, nonprofit corporations include NGOs and also are exempted by the state from paying taxes. However, a nonprofit corporation must have a board of directors which handles overseeing and keeping the organization on track, working towards its mission (Richard Mann 218).