"Due to limited liability, unlimited lives, case of ownership transfer, and tax advantages, almost every US business (in terms of number of businesses) are organized as corporations. "Most businesses (by number and total dollar sales) are organized as proprietorships or partnerships because it is easier to set up and has no liability for the partners rather than as a corporation. However, if the business gets very large, it becomes advantageous to convert to a corporation, primarily because corporations have important tax advantages over proprietorships and partnerships "For a large company (taxable income over $1 million), the tax situation would, generally, favor organization as a partnership or proprietorship, or possibly as an S corporation, rather than as a regular corporation. However, there are advantages such as legal considerations related to ownership transfers and liability, hence many decide to be organized as a corporation." "In the typical situation, a taxpayer's average tax rate is below his or her marginal rate. However, there is an income range within which the average rate exceeds the marginal rate." 4 points Save An QUESTION 20 Which of the following is not a limitation of the proprietorship form of business? Unlimited personal liability Difficulty raising capital Double taxation Difficulty in transferring ownership Limited life Click Save and submit to save and submit. Click Save All Answers to save all answers, Save ASHES Save and Su O HA