Miguel and Ricardo have partnered in running a one-shop auto repair business for several years. Lately they have had to turn away many customers for lack of time, mechanics, and space to work on so many cars
They want to open another shop, and think it is time to incorporate. A limited liability company is the best choice for them.
Indicate whether the statement is true or false.
Answer: TRUE
Explanation: A limited liability company is best because it would combine the tax benefits of a partnership—one level of tax—with the limited liability of a corporation. It works best for a company with few players. It is also free of many of the legal requirements that govern corporations, including annual reports, director meetings, and shareholder requirements.
You might also like to view...
In selling securities in his company, Cody complies with nearly all of the rules under the Securities Act of 1933. However, he deliberately overstates the value of the company in the prospectus, and he begins selling the shares one week before the effective date of the registration. Cody is subject
a. to prosecution by the Department of Justice and is liable for fines and damages if investors are harmed by his acts. b. only to criminal prosecution by the state attorney general in the state where he committed the crime. c. only to civil fines and damages imposed by the SEC. d. only to civil fines and damages imposed by a state attorney general.
Annuities can be funded through a single premium or through multiple premium.
a. true b. false