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Business Organizations Advantages/Disadvantages PowerPoint Presentation
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Business Organizations Advantages/Disadvantages

Business Organizations Advantages/Disadvantages

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Business Organizations Advantages/Disadvantages

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Presentation Transcript

  1. Business Organizations Advantages/Disadvantages • Florida Gulf Coast University • Small Business Development Center (SBDC) • Procurement Technical Assistance Center (PTAC)

  2. Who are we?

  3. Where are we located?

  4. SBDC/PTAC Ft Myers Florida (239)225-4220 www.floridasbdc.com www.fptac.org

  5. Business Organizations • Sole Proprietor • General Partnership • Corporation • S Corporation • Limited Liability Company LLC

  6. 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

  7. Sole Proprietor • Disadvantages Unlimited Liability Death-the Business Dies Limited Ability-Raise Funds Limited Fed Tax Deductions

  8. General Partnership • Advantages Easy to Form Fictitious Name Direct Pass Through of Profit/Losses Maintain Equal Control Shared Responsibilities

  9. General Partnership • Disadvantages Unlimited Liability Death-Termination of Business Decision Making Process Lacks Formal Structure Limits on Ability to Raise Funds

  10. Corporations • Advantages Limited Liability Creates Stock Ability to Raise Capital Create Retained Earning Continual Existence Easier to Sell Easier to Deduct Business Expenses

  11. Corporations • Disadvantages Double Taxation Corporate Formation Fees Governmental Regulations Corporate Formation and Paperwork

  12. S Corporation • Advantages Limited Liability Avoids Double Taxation Same Basic Advantages of a Corporation--- Stocks/Capital Existence Transferable Deductions

  13. S Corporation • Disadvantages Corporate Formation Fees Governmental Regulations Limited to Individuals US Citizen or Resident 75 Shareholders – Limited Primary Purpose- Restrictions

  14. Limited Liability Company • Advantages Limited Liability for General Manager and Members Various Entity Ownership Pass Through Tax Ramifications Unlimited Number of Owners

  15. Limited Liability Company • Disadvantages Formation Costs Lack of Jurisprudence in FL Professional Assistance is Needed to Set Up Tax Implications- Depending on Size

  16. Five Critical Factors • Legal Liability • Tax Implications • Costs of Formulation • Flexibility • Future Needs

  17. Thank you!Contact SBDC/PTAC at 239-745-3708