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1. The Downing family has owned and operated discount furniture and home decor business for four
generations. As the younger third and fourth generations are preparing to assume greater
responsibility, they are discussing changing the ownership structure of the business to either an S
corporation or a limited liability company LLC to better serve the needs of the families and
reduce liabilities. Which business structure would serve the family best? What are some influential
factors to consider? Provide reasons to substantiate your choice.

Sagot :

Lanuel

The business ownership structure which would best serve the family is a limited liability company (LLC).

The types of business ownership.

Generally, there are different types of business ownership and these include the following:

  • Sole proprietorship
  • Partnership
  • Corporation
  • S corporation
  • Cooperative
  • Limited liability company (LLC).

What is a limited liability company (LLC)?

A limited liability company (LLC) can be defined as a type of legal hybrid-business ownership structure that can combines both partnership and corporation form of business, and the business owners are only responsible for its debts based on the amount of capital (resources or money) they have invested.

Some of the advantages of a limited liability company (LLC) are:

  1. It provides it's owners with limited liability such as business debts.
  2. It isn't taxed directly by the internal revenue service (IRS).

In conclusion, a limited liability company (LLC) isn't regarded as a separate tax business entity and it protects the owners from personal responsibility for any form of debts or liabilities.

Read more on business ownership here: https://brainly.com/question/6084346

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