Due Day 7

Reply to at least 2 of your classmates. Be constructive and professional in your responses.

I NEED A RESPONSE TO THIS PARTICIPATION POST.....I have always thought about opening my own bakery. It's been even more of a possibility lately, because my daughter loves to bake and would also like to open one, so we've really been talking about it. I think I would like to create it as a limited liability corporation to have the liability fall on the company instead of me possibly being responsible if something happens. If it was established as a sole proprietorship the liability would fall on me personally. A limited liability corporation would protect any personal assets I may have from any lawsuit or claim against the company. It also relinquishes personal responsibility from any debts or liabilities the company may incur, but cannot pay. For tax purposes, I can claim the profits and losses on my personal tax return and intern be taxed at my individual tax rate. If the business was created as a corporation, I would have to file tax returns for the company and be taxed at the corporate rate which results in double taxation. If the company became popular and I wanted to expand and have other locations, then I might have to think about changing it to a corporation.