Describe the advantages of a sole proprietorship

Assignment Help Financial Accounting
Reference no: EM13180564

Your client through YOUCPA-a 50-year-old owner of a firm-has requested that she become a sole proprietorship in the state. The owner does not like paperwork and reporting of information. Her goal is to keep the business simple for her. The firm will have losses in the early years. However, you forecast steady profits for the firm after the 3rd year. She is contemplating passing on the firm to her son, Kate.
After looking at this situation, you are contemplating recommending that she form a limited liability corporation (LLC).

Describe the advantages of each of the following:

A sole proprietorship

A limited liability corporation

Do you recommend that this client choose an LLC or not? Explain your rationale.

Reference no: EM13180564

Questions Cloud

Journalize the transactions and the adjusting entries : Journalize the transactions and the adjusting entries - Recorded depreciation on the remaining truck. It has an estimated residual value of $15,000 and an estimated useful life of 10 years.
Explain the concentration of the most dilute solution : Five standar solutions of HBr are prepared by serials dilutions in which at each stage 10.00 mL are diluted to 160.00 mL. Given that the concentration of the most dilute solution
Find the number of revolutions made by a wheel with a radius : find the number of revolutions made by a wheel with a radius of 5ft that traveled 633ft use 3.14 for pie round answer to nearest tenth of revolution.
Find a formula for the percentage of carbon monoxide : the well circulated air mixture is vented from the room at the same rate, find a formula for the percentage of carbon monoxide in the room at time t?
Describe the advantages of a sole proprietorship : Describe the advantages of a sole proprietorship and a limited liability corporation
Write a correct statement using two of the numbers : Write a correct statement using two of the numbers, 0, 13/16 and 0.82 and one of the symbols , or =.
Is the monopolist better or worse off : A profit maximizing monopolist is earning a positive economic profit. The wage it pays its workers rises. How will the firms choice of Price and Quanity change in response to the wage increase. Use a diagram in your answer.
State the sulfuric acid concentration is kept constant : An experiment identical to the one you just preformed is done by another student.except the amperage is continuously increased while the sulfuric acid concentration is kept constant
At which percentage rate were the gross annual earnings grow : The gross annual earnings of a certain company A(t)= 0.1t^(2)+10t+ 20 thousand dollars t years after its formation in 2004. At which percentage rate were the gross annual earnings growing with respect to time in 2008?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute depreciation expense on the machinery

Prepare the journal entry necessary to record the depreciation expense on the building in 2011. Compute depreciation expense on the machinery for 2011.

  Describe several ways the cfo organization

The difference between the actual value and the projected value is called data dispersion. Please describe several ways the CFO organization can use to mitigate the data dispersion risks.

  Prepare a statement of activities for the year ended

Prepare journal entries in good form to record the foregoing transactions for the fiscal year ended June 30, 2011.

  Standard mileage method

Jan receives no reimbursement from her employer. Jan has an AGI for year of $50,000 and no other itemized deductions.

  Which factors of production gain and factors of production

Which factors of production gain and which factors of production lose when trade arises between these two countries?

  How much of employer paid adoption costs must be included

They spent $15,000 in connection with the adoption, all of which was paid by the employer in accordance with the adoption plan. How much of employer paid adoption costs must be included in their income?

  Financial accounting income statement

A corporate taxpayer has an income tax expenditure recorded on its preliminary financial statements if $13,000,000. How could the $1,000,000 be reflected in the financial accounting income statement?

  Difference between gaap used in financial statements

Difference between GAAP used in financial statements and government regulation and Show the difference between GAAP being used in financial statements and government regulations being used in financial statements.

  What conclusion could you draw from here

Now, in Scenario B, we are going to borrow $4,000 debt and reduce the Equity to $6,000. Assume a 9% interest rate. Could you try to figure out the ROE. What conclusion could you draw from here?

  Evaluate total variable costs for the production and sale

Evaluate the amount of desired profit from the production and sale of Product T. and evaluate the total variable costs for the production and sale of 75,000 units of Product T.

  What is the realized gain

The building was originally bought seven years ago for $62000 and has taken $15000 in depreciation, what is the realized gain

  Why does the gaap not allow a company to use the percentage

Why does the GAAP not allow a company to use the percentage of sales and the percentage of receivables methods at the same time?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd