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</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</p> Signup and view all the answers

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

    <p>Yes</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</p> Signup and view all the answers

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

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

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

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

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

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

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