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Student’s Name Professor’s Name Course Title Date of submissionWhy a Small Business Should Choose an S Corporation Limited Liability Companies and S corporations have lately been on the increase with the increased demand for investors and business people to have sure protection for their assets. However much the two may seem to be similar regarding their functions and even the way of operation, they as well have a sharp contrast that makes them different and distinct. Additionally, a business will have to keenly analyze the situation before resorting to whether it should adopt a Limited Liability Status or that of an S Corporation. This essay puts into consideration the reasons why should opt for an S Corporation instead of a Limited Liability Company. Apparently, a significant fact that gives an upper hand on the S Corporations is the fact that they offer and allow investment opportunities to the members. Evidently, once investment increases then it directly relates to more profits and returns for the members. Additionally, such organizations enjoy a perpetual existence just like the limited companies, and hence the passing away of one of the members does not drag the business behind in any way. The limited liability that they also enjoy makes them convenient to start and operate since some surety of evading losses exists. Also, the ease in the registration of the S corporations unlike the Limited Liability Companies gives an advantage of easy formation thus makes more individuals willing to register such organizations. In addition to that, they are very advantageous in that they are not subject to double taxation. Members of Limited companies are exposed to
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