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Zoe operates Wood Rail Center Sports, an athletic equipment shop, as a sole proprietorship. She is concerned about her tax liability, and wondering whether to continue as a sole proprietorship or to reorganize under another business structure. Which of the following would be the best advice for Zoe?
Zoe should remain a sole proprietorship; she would have the same tax liability if she reorganizes as a LLC.
Zoe should remain a sole proprietorship; there are no business taxes on sole proprietorships.
Zoe should consider reorganizing as a LLC to reduce her tax liability.
Zoe should consider reorganizing as a corporation to avoid personal tax liability on business income.
Partners Health Care Systems (PHS): Transforming Health Care Services Delivery through Information Management
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