{"id":302,"date":"2019-06-08T20:29:46","date_gmt":"2019-06-08T20:29:46","guid":{"rendered":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/?p=302"},"modified":"2019-06-13T21:36:02","modified_gmt":"2019-06-13T21:36:02","slug":"legal-issues","status":"publish","type":"post","link":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/legal-issues\/","title":{"rendered":"Legal Issues"},"content":{"rendered":"\n<hr class=\"wp-block-separator is-style-dots\" \/>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"400\" src=\"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-content\/uploads\/sites\/14625\/2019\/06\/legal-issues.jpg\" alt=\"\" class=\"wp-image-303\" srcset=\"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-content\/uploads\/sites\/14625\/2019\/06\/legal-issues.jpg 800w, https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-content\/uploads\/sites\/14625\/2019\/06\/legal-issues-300x150.jpg 300w, https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-content\/uploads\/sites\/14625\/2019\/06\/legal-issues-768x384.jpg 768w, https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-content\/uploads\/sites\/14625\/2019\/06\/legal-issues-600x300.jpg 600w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<p>It is always important to be aware of legal issues so that you can take advantage of legal protection and avoid damages and extra fees.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Legal Forms of Organization<\/h4>\n\n\n\n<ul><li>Least Protected<ul><li>Sole Proprietor<\/li><\/ul><ul><li>Partnership<\/li><\/ul><\/li><li>Bridges<ul><li>S-Corp<\/li><li>LLC<\/li><\/ul><\/li><li>Most Protected<ul><li>C-Corp<\/li><li>Non-profit<\/li><\/ul><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<p class=\"has-background has-luminous-vivid-amber-background-color\"><strong>Sole Proprietor<\/strong><\/p>\n\n\n\n<ul><li>Advantages<ul><li>Easy and cheap to create<\/li><li>100% control and profit<\/li><li>No information disclosure required<\/li><li>Taxed at the individual level<\/li><\/ul><\/li><li>Disadvantages <ul><li>Unlimited liability for all claims against the business &#8211; important to get insurance <\/li><li>Difficult to raise debt capital <\/li><li>Survival of the business is 100% dependent on the owner<\/li><\/ul><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<p class=\"has-background has-luminous-vivid-amber-background-color\"><strong>Partnership<\/strong><\/p>\n\n\n\n<ul><li>Advantages<ul><li>Sharing the risks of doing business<\/li><li>Sharing expertise and ideas<\/li><li>Taxed at the individual level<\/li><\/ul><\/li><li>Disadvantages<ul><li>Each partner is liable for the obligations of other partners<\/li><li>Partnership dissolves when a partner leaves or dies<\/li><li>An individual partner can be sued for the full amount of partnership debt <\/li><\/ul><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<p class=\"has-background has-luminous-vivid-amber-background-color\"><strong>C-Corporation<\/strong><\/p>\n\n\n\n<ul><li>Advantages<ul><li>Limited liability<\/li><li>Ownership is easily transferred<\/li><li>May apply employment benefits<\/li><li>More status and deference <\/li><\/ul><\/li><li>Disadvantages<ul><li>More expensive and complex to start<\/li><li>Taxed on corporate income<\/li><li>Giving up control<\/li><\/ul><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<p class=\"has-background has-luminous-vivid-amber-background-color\"><strong>Non-Profit<\/strong><\/p>\n\n\n\n<ul><li>Advantages<ul><li>May qualify for tax-exempt status<\/li><li>Attract corporate donors who can deduct donations as business expenses<\/li><li>Can apply for grants from government agencies and private foundations<\/li><\/ul><\/li><li>Disadvantages<ul><li>Profit cannot be distributed as dividends<\/li><li>Entrepreneurs give up proprietary interest in the company <\/li><li>Must pay tax on the profits from unrelated activities <\/li><\/ul><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<p class=\"has-background has-luminous-vivid-amber-background-color\"><strong>S-Corporation<\/strong><\/p>\n\n\n\n<ul><li>Advantages<ul><li>No double taxation<\/li><li>Business losses to be passed through at individual level<\/li><li>No self-employment taxes + distributions<\/li><\/ul><\/li><li>Disadvantages<ul><li>Have to pay taxes on profit including planned retaining earnings<\/li><li>Must be able to generate enough cash to pay the tax <\/li><\/ul><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<p class=\"has-background has-luminous-vivid-amber-background-color\"><strong>Limited Liability Company (LLC)<\/strong><\/p>\n\n\n\n<ul><li>Advantages<ul><li>No double taxation &#8211; an LLC can choose to be taxed as an S-Corp or a C-Corp <\/li><li>Better than a limited partnership &#8211; limited liability + management right <\/li><li>unlimited # of members + may have foreign investors <\/li><\/ul><\/li><li>Disadvantages <ul><li>May have too many managers<\/li><li>Pay more tax than S-Corp<\/li><\/ul><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\" \/>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is always important to be aware of legal issues so that you can take advantage of legal protection and avoid damages and extra fees. Legal Forms of Organization Least Protected Sole Proprietor Partnership Bridges S-Corp LLC Most Protected C-Corp Non-profit Sole Proprietor Advantages Easy and cheap to create 100% control and profit No information&#8230; <\/p>\n<div class=\"link-more\"><a href=\"https:\/\/sites.wp.odu.edu\/taryngilbert002\/legal-issues\/\">Read More<\/a><\/div>\n","protected":false},"author":13953,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","wds_primary_category":0},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/posts\/302"}],"collection":[{"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/users\/13953"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/comments?post=302"}],"version-history":[{"count":3,"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/posts\/302\/revisions"}],"predecessor-version":[{"id":317,"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/posts\/302\/revisions\/317"}],"wp:attachment":[{"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/media?parent=302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/categories?post=302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.wp.odu.edu\/taryngilbert002\/wp-json\/wp\/v2\/tags?post=302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}