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?

  • 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?

<p>Simple (D)</p> Signup and view all the answers

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

<p>Does not need to register with the state (B)</p> Signup and view all the answers

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

<p>Yes (D)</p> Signup and view all the answers

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

<p>Can use a personal account (A)</p> Signup and view all the answers

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

<p>Single control (C)</p> Signup and view all the answers

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

<p>Easy and simple (B)</p> Signup and view all the answers

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

<p>Unlimited liability (A)</p> Signup and view all the answers

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