Help Seve & Exit Your three friends inherited an old dude ranch, and plan to turn it into a pasture for retired racehorses, Shady Rest wants to open its doors by next summer. After going to several small business seminars, your friends are certain they need limited liability. The high-risk, labor-intensive business will require a sizeable investment including an air-conditioned barn, several fenced-in pastures, and loads of animal feed. You explain to them that LLC ownership requires owners to pay self-employment taxes on the entire amount of earnings. You are fairly certain this is one tax liability your friends would like to avoid. You instead recommend Multiple Choice sole proprietorship. general partnership. an S corporation. a limited liability company
Help Seve & Exit Your three friends inherited an old dude ranch, and plan to turn it into a pasture for retired racehorses, Shady Rest wants to open its doors by next summer. After going to several small business seminars, your friends are certain they need limited liability. The high-risk, labor-intensive business will require a sizeable investment including an air-conditioned barn, several fenced-in pastures, and loads of animal feed. You explain to them that LLC ownership requires owners to pay self-employment taxes on the entire amount of earnings. You are fairly certain this is one tax liability your friends would like to avoid. You instead recommend Multiple Choice sole proprietorship. general partnership. an S corporation. a limited liability company
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![Help
Seve & Exit
Your three friends inherited an old dude ranch, and plan to turn it into a pasture for retired racehorses, Shady Rest wants to open its doors by next summer. After going to several small business seminars, your friends are
certain they need limited liability. The high-risk, labor-intensive business will require a sizeable investment including an air-conditioned barn, several fenced-in pastures, and loads of animal feed. You explain to them that
LLC ownership requires owners to pay self-employment taxes on the entire amount of earnings. You are fairly certain this is one tax liability your friends would like to avoid. You instead recommend
Multiple Choice
sole proprietorship.
general partnership.
an S corporation.
a limited liability company.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e830ada-e457-4dd8-9711-04a27a3635ba%2Facbd34e1-4620-4e1b-b38b-32d595c2ee7b%2F3e4sr5l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Help
Seve & Exit
Your three friends inherited an old dude ranch, and plan to turn it into a pasture for retired racehorses, Shady Rest wants to open its doors by next summer. After going to several small business seminars, your friends are
certain they need limited liability. The high-risk, labor-intensive business will require a sizeable investment including an air-conditioned barn, several fenced-in pastures, and loads of animal feed. You explain to them that
LLC ownership requires owners to pay self-employment taxes on the entire amount of earnings. You are fairly certain this is one tax liability your friends would like to avoid. You instead recommend
Multiple Choice
sole proprietorship.
general partnership.
an S corporation.
a limited liability company.
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