Florida Gulf Coast University Small Business Development Center (SBDC) Procurement Technical...

• Florida Gulf Coast University

• Small Business Development Center (SBDC)

• Procurement Technical Assistance Center (PTAC)

Who are we?

Where are we located?

SBDC/PTACFt Myers Florida

(239)225-4220www.floridasbdc.com

www.fptac.org

Business Organizations

Sole Proprietor

General Partnership

Corporation

S Corporation

Limited Liability Company LLC

Sole Proprietor

Advantages Easy to FormNo Legal DocumentsFederal Income Tax Schedule CProfits/Losses Pass directly to the OwnerYou are the Boss

Sole Proprietor

DisadvantagesUnlimited LiabilityDeath-the Business DiesLimited Ability-Raise Funds

Limited Fed Tax Deductions

General Partnership

Advantages Easy to FormFictitious NameDirect Pass Through of

Profit/LossesMaintain Equal ControlShared Responsibilities

General PartnershipDisadvantages

Unlimited Liability Death-Termination of

BusinessDecision Making Process Lacks Formal StructureLimits on Ability to Raise Funds

CorporationsAdvantages

Limited LiabilityCreates StockAbility to Raise CapitalCreate Retained EarningContinual ExistenceEasier to SellEasier to Deduct Business

Expenses

CorporationsDisadvantages

Double TaxationCorporate Formation FeesGovernmental RegulationsCorporate Formation and

Paperwork

S CorporationAdvantages

Limited LiabilityAvoids Double TaxationSame Basic Advantages of

a Corporation---Stocks/CapitalExistenceTransferableDeductions

S CorporationDisadvantages

Corporate Formation FeesGovernmental RegulationsLimited to Individuals

US Citizen or Resident75 Shareholders – Limited

Primary Purpose- Restrictions

Limited Liability CompanyAdvantages

Limited Liability for General Manager and Members

Various Entity OwnershipPass Through Tax

RamificationsUnlimited Number of

Owners

Limited Liability CompanyDisadvantages

Formation CostsLack of Jurisprudence in FL

Professional Assistance is Needed to Set Up

Tax Implications- Depending on Size

Five Critical Factors Legal Liability

Tax Implications

Costs of Formulation Flexibility Future Needs

Thank you!

Contact

SBDC/PTAC at

239-745-3708