Give an example of a hypothetical small business startup (opening a new gym) situation and recommend...

Question

Give an example of a hypothetical small business startup (opening a new gym) situation and recommend the particular business form you feel is most appropriate based on the characteristics of the business in your example and the benefits of your chosen entity, and you will justify your choice. Sole proprietorships, partnerships, limited liability corporations, C corporations, and S corporations all have distinct potential advantages and disadvantages for tax purposes. However, potential tax implications must be considered in tandem with the characteristics of a business and the expectations and goals of the business owners to ensure the best choice is made. When working as a financial advisor, one issue that often arises is the need to assist a new business owner in identifying the correct form a business should take, mainly for tax purposes. Using your critical reflection on the reading and all of your knowledge from the course so far, choose one of the five taxable entities and present an example of a specific hypothetical startup business (new gym) situation for which your chosen entity might be appropriate, given the business characteristics of the example you provide and the potential benefits a particular form of entity offers. For example, if you gave the example of opening a chain of gas stations with three other investors, you would suggest what type of entity suits the situation and explain your reasoning. Assume that one of the owners of your hypothetical business is a Canadian citizen who is not a U.S. resident alien. (obviously can't be an S-corp).

Soumi · Accepted Answer

Running Head: HYPOTHETICAL SMALL BUSINESS START-UP	1
HYPOTHETICAL SMALL BUSINESS START-UP 	2
FINANCIAL ACCOUNTING
HYPOTHETICAL SMALL BUSINESS START-UP
Table of Contents
Example of a Hypothetical Small Business Start-up	3
Most Suitable Business Form for my Start-up	3
Benefits of the Chosen Business Form	3
References	4
Example of a Hypothetical Small Business Start-up
Small business start-ups are a great opportunity for entrepreneurs to set themselves into the business world and learn the skills needed for being a successful businessperson in future. Besides, as supported by Kolvereid (2016), opening a start-up business can also provide the opportunity to know the benefits and drawbacks of various business forms, in which the business can be set up. 
In order to make use of this scope,

Give an example of a hypothetical small business startup (opening a new gym) situation and recommend the particular business form you feel is most appropriate based on the characteristics of the...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment