Kinh doanh marketing - Chapter 3: Forms of ownership of small business

Chapter 3Forms of Ownership of Small BusinessForms OfBusiness OwnershipPrimary Legal FormsAdvantages & Disadvantages Of Each FormOther Legal FormsChapter3McGraw-Hill/Irwin© 2006 The McGraw-Hill Companies, Inc. All rights reserved.Right Legal Form:Business Factors To ConsiderFuture SizeNatureDesired ControlLegal VulnerabilityTax ImplicationsExpected Profit (Loss)Re-investmentPersonal Cash NeedsPhotoLink/Getty ImagesRelativePositions Of Legal FormsLegal Form By IndustryLegal FormBy Industry’s ReceiptsProprietorshipAdvantages/DisadvantagesInsert Figure 3.2Partial List Of FederalTax Forms: Sole ProprietorshipForm 1040: Individual Income Tax ReturnSchedule C: Business Profit (Loss)Schedule SE: Self-Employment TaxForm 1040EZ: Estimated Tax For IndividualsForm 4562: Depreciation & AmortizationForm 8829: Expenses For Business Use Of Your HomeEmployment Tax Forms Schedule CFrontBackPartnershipAdvantages/DisadvantagesOperation ofGeneral PartnershipUniform Partnership ActPartners Responsible For Other Partners’ ActionsLiability:Personal Property At RiskAll Debts Of FirmResolve Disputes Among Partners(?)S. Wanke/PhotoLink/Getty ImagesTypes Of PartnershipsGeneralPartnerGeneralPartnerGeneralPartnerPartners Liable For Each Others’ ActionsGeneralPartnerLimitedPartnerLimitedPartnerLimitedPartnerManage With Unlimited LiabilityLiability = Capital ContributionPartnership:Legal/Tax DocumentsArticles of Co-PartnershipTax FormsForm 1065 K-1: Partner’s Share Of Income, Credit, DeductionsForm 4562: DepreciationForm 1040: Individual Income Tax ReturnSchedule E: Supplemental Income & LossSchedule SE: Self-Employment TaxForm 1040-ES: Estimated Tax For IndividualEmployment Tax FormsForm 1065 K-1 (Pages 1 & 2)FrontBackForm 1065 K-1 (Pages 3 & 4)FrontBackCorporationAdvantages/DisadvantagesForm 1120AFrontBackForm 1120 (Pages 1 & 2)FrontBackForm 1120 (Page 3 & 4)FrontBackFormation Of CorporationArticles Of Incorporation- Filed With StateCorporate Charter- Comes From StateBuy-Sell Agreement- Include In Articles Of IncorporationCorporate GovernanceStockholdersBoard Of DirectorsCorporate OfficersElectsAppointsS CorporationExempt From Multiple TaxationLess Than 100 StockholdersOne Stock Class- CommonNo Corporations Or Partnerships Can Be StockholdersStockholders = U.S. Citizens Or Permanent ResidentsEarly 1990s Lost Appeal Because Of Tax Law ChangeTAXESRoyalty-Free/CORBISPartial List Of FederalTax Forms: S CorporationForm 1120S: Income Tax Return For S CorporationForm 1120S K-1: Shareholder’s Share Of Income, Credit, DeductionsForm 4625: DepreciationEmployment Tax Forms Form 1040: Individual Tax ReturnSchedule E: Supplemental Income (Loss)Schedule SE: Self-Employment TaxFrom 1040ES: Estimated Tax For IndividualsOther Forms Royalty-Free/CORBISForm 1120S (Page 1 & 2)FrontBackForm 1120S (Page 3)LimitedLiability CompaniesSince 1977Benefits:Limited LiabilityTaxed As PartnershipSimilar To S CorporationOwners = MembersLifespan- Determined At OrganizationEmma Lee/Life File/Getty ImagesOther LegalForms Of OwnershipLimited Liability PartnershipProtects Individual PartnersNot Recognized By Every StateFamily Limited Liability PartnershipPartners RelatedAgriculture/Family FarmsProfessional Service CorporationProvides Licensed Professional ServicesDoctors, Lawyers, & AccountantsF. Schussler/PhotoLink/Getty ImagesNonprofit CorporationsCivic, Charitable, Educational, ReligiousTax ExemptCooperativeIndependent ProducersBuys/Sells For ClientsJoint VentureFractional OwnershipOther LegalForms Of Ownership (cont’d)Royalty-Free/CORBISChecklist ForLegal Form Evaluation