Business Entity Pros And Cons

Finn Kevin26 May, 2022Business

Pros: Simple creation process. Easy to operate and dissolve. No separate tax return. Easy to integrate business use of home deductions. Liability protection for member, except for malpractice. No double taxation of profits. Cons: Self-employment tax is assessed on entire profit of the business. Transfer of ownership can be complex. Limited access to fringe benefits for owners. Laws regulating LLCs vary widely among states.