| Before you decide whether or not to form a | | | | proprietorship and, there are more tax deductions. |
| corporation, there are some factors you need to put | | | | A corporation is very expensive to form and also to |
| into consideration. A corporation is formed by many | | | | maintain due to the various charges involved. For |
| shareholders who have limited liabilities. If in any case | | | | instance, annual fees to the state, tax, filling fees |
| the firm is unable to pay its debts, your assets can not | | | | among other charges. There is double taxation of |
| be sold to clear off the bills since you and the firm are | | | | profits in that, the firm has to pay income tax before |
| two different entities. This means that, all profits and | | | | any profits are paid to the shareholders. Any divided |
| losses belongs to the firm and not the stakeholders. | | | | distributed to the stakeholders is subjected through |
| The power structure is well defined since shareholders | | | | each individuals income tax. |
| have different roles and responsibilities such as | | | | Regardless of whether or not a firm has made |
| directors, officers and accountants. The ability to | | | | income, they must file tax returns every year to |
| attract more investors is high because of the unlimited | | | | maintain the corporation status. With this information in |
| number of shareholders and also due to good | | | | mind, make your decision wisely to avoid complicating |
| management. There are more job opportunities | | | | your life due to unnecessary expenses. You need to |
| especially with big firms thereby improving the | | | | have real good money to withstand the challenges and |
| economy and eliminating poverty. The annual tax rate | | | | run your family affairs. |
| of a corporation is lower compared to a sole | | | | |