Corporation or Cooperative
Author:
Vertax Accountants
|
| Advantages |
Disadvantages |
| There is continual existence. |
It is expensive to set up. |
| Ownership can be transferred. |
It’s closely regulated. |
| Has its own specialized management. |
It requires extensive record keeping. |
| There is limited liability. |
Personal guarantees can undermine limited liabilities. |
| Is a separate legal entity. |
There is shareholder liability. |
| It’s easier to raise capital. |
Dividend taxation is the norm. |
| Enjoy tax advantages & exemptions for capital gains. |
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