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Business Organizations Advantages/Disadvantages. Florida Gulf Coast University Small Business Development Center (SBDC) Procurement Technical Assistance Center (PTAC). Who are we?. Where are we located?. SBDC/PTAC Ft Myers Florida (239)225-4220
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Business Organizations Advantages/Disadvantages • Florida Gulf Coast University • Small Business Development Center (SBDC) • Procurement Technical Assistance Center (PTAC)
SBDC/PTAC Ft Myers Florida (239)225-4220 www.floridasbdc.com www.fptac.org
Business Organizations • Sole Proprietor • General Partnership • Corporation • S Corporation • Limited Liability Company LLC
Sole Proprietor • Advantages Easy to Form No Legal Documents Federal Income Tax Schedule C Profits/Losses Pass directly to the Owner You are the Boss
Sole Proprietor • Disadvantages Unlimited Liability Death-the Business Dies Limited Ability-Raise Funds Limited Fed Tax Deductions
General Partnership • Advantages Easy to Form Fictitious Name Direct Pass Through of Profit/Losses Maintain Equal Control Shared Responsibilities
General Partnership • Disadvantages Unlimited Liability Death-Termination of Business Decision Making Process Lacks Formal Structure Limits on Ability to Raise Funds
Corporations • Advantages Limited Liability Creates Stock Ability to Raise Capital Create Retained Earning Continual Existence Easier to Sell Easier to Deduct Business Expenses
Corporations • Disadvantages Double Taxation Corporate Formation Fees Governmental Regulations Corporate Formation and Paperwork
S Corporation • Advantages Limited Liability Avoids Double Taxation Same Basic Advantages of a Corporation--- Stocks/Capital Existence Transferable Deductions
S Corporation • Disadvantages Corporate Formation Fees Governmental Regulations Limited to Individuals US Citizen or Resident 75 Shareholders – Limited Primary Purpose- Restrictions
Limited Liability Company • Advantages Limited Liability for General Manager and Members Various Entity Ownership Pass Through Tax Ramifications Unlimited Number of Owners
Limited Liability Company • Disadvantages Formation Costs Lack of Jurisprudence in FL Professional Assistance is Needed to Set Up Tax Implications- Depending on Size
Five Critical Factors • Legal Liability • Tax Implications • Costs of Formulation • Flexibility • Future Needs