DB#2: Form of Organization:One of the most important decisions business owners make is theform of...

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DB#2: Form of Organization:One of the most important decisions business owners make is theform of organizationthey select for conducting business. Read the article "forms of organization"attached and provide your thoughts or opinions on that. This article summarizes the pros and cons of company structures. Since this decision will affect nearly every aspect of a firm’s operations, it is important that thefinance professionalsunderstand the tax and economic implications of the company structure. normal tying style for a regular discussion boardforms of organization.pdf

Tanmoy · Accepted Answer

Types of Businesses
	Tax & Economic implications
	Sole Proprietorship
	In US, sole proprietor is considered as a pass through entity where the income from business passes through the owner and who is responsible for reporting the personal income tax returns. The sole proprietor is responsible for paying federal and state income tax by filling Form 1040 for reporting personal income and Schedule C for reporting business income. They can also avail the benefit of 20% on the net business income if they opt for the pass through deduction facility (Rebecca Lake, 2020).
	Partnerships & LLC’s
	Partnerships and LLC’s are considered as conduit or legal entities in United States for the purpose of tax. As these are conduit entities, the income is taxed at one level. In this case the owners of these entities are taxed rather the entities. When income is distributed to the owners there is no further taxation.

DB#2: Form of Organization:One of the most important decisions business owners make is the form of organization they select for conducting business. Read the article " forms of organization" attached...

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