LLC Business Structure: Benefits and Drawbacks

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What is the primary advantage of a sole proprietorship's tax system?

Tax benefits for employees

Double taxation

Income taxed only once (correct)

Tax exemption

What is the main requirement for registering for VAT as a sole trader in the US?

Registering with the state

Making less than an established amount of money

Opening a business checking account

Making more than an established amount of money (correct)

What is the responsibility of a sole trader in terms of business finances?

Limited liability

Shared liability

Joint liability

Unlimited liability (correct)

What is the process of filing taxes like for a sole proprietorship?

Simple Signup and view all the answers

What is the advantage of a sole proprietorship in terms of business registration?

Does not need to register with the state Signup and view all the answers

Can a sole trader voluntarily register for VAT in the US?

Yes Signup and view all the answers

What is the benefit of a sole proprietorship in terms of financial management?

Can use a personal account Signup and view all the answers

What is the characteristic of a sole trader in terms of business control?

Single control Signup and view all the answers

What is the benefit of a sole proprietorship in terms of setup?

Easy and simple Signup and view all the answers

What is the limitation of a sole proprietorship in terms of liability?

Unlimited liability Signup and view all the answers

LLC Business Structure: Benefits and Drawbacks

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Questions and Answers

What is the primary advantage of a sole proprietorship's tax system?

What is the main requirement for registering for VAT as a sole trader in the US?

What is the responsibility of a sole trader in terms of business finances?

What is the process of filing taxes like for a sole proprietorship?

What is the advantage of a sole proprietorship in terms of business registration?

Can a sole trader voluntarily register for VAT in the US?

What is the benefit of a sole proprietorship in terms of financial management?

What is the characteristic of a sole trader in terms of business control?

What is the benefit of a sole proprietorship in terms of setup?

What is the limitation of a sole proprietorship in terms of liability?

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