Florida Gulf Coast University Small Business Development Center (SBDC) Procurement Technical Assistance Center (PTAC)

Who are we?

Where are we located?

SBDC/PTAC Ft Myers Florida (239)

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

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

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

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

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

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

Corporations Disadvantages Double Taxation Corporate Formation Fees Governmental Regulations Corporate Formation and Paperwork

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

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

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

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

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

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