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What entities or business forms are available for a new enterprise? Explain the advantages and disadvantages of each.

Begin by selecting the entity or business forms available for a new enterprise. (Select all that apply.)

Select an "X" for the entities or business forms that offer the tax advantage listed when doing business as that type of entity. (If the entity or business form does not create the advantage listed, leave the input field blank. For LLCs and LLPs, assume that the entity has two or more owners and has not elected to be treated as a corporation.)

A. Sole proprietorships B. Corporations C. Limited liability partnerships (LLP) D. Limited liability companies (LLC) E. Partnerships field blank. For LLCs and LLPs, assume that the entity has two or more owners and has not elected to be treated as a corporation.) Sole Advantages Losses can be used to offset income from other sources (may be subject to limitations.) Not taxed as a separate business entity. Instead, all profits and losses pass through to the owner(s) or member(s). Shareholders generally can contribute money to or withdraw money from this entity without recognizing gain. Shareholder-employees are entitled to nontaxable fringe benefits. Income is not subject to double taxation. The entity can use a fiscal instead of a calendar year as its reporting period without demonstrating a business purpose or making a special election. There are no restrictions on the types of owners the company can have. Offers its owners some form of limited liability. May be eligible for the 20% qualified business income deduction LLC LLP Partnership S Corp C Corp proprietor

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