Herman, who is unmarried and has 2 dependent children, owns and operates a used car lot as
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Herman, who is unmarried and has 2 dependent children, owns and operates a used car lot as a sole proprietorship. The net income from the business is consistently $120,000 annually. Herman's friends have told him that he should incorporate his business, but he does not understand how this would give him any advantage. He has come to you for advice. Write Herman a letter explaining the advantages and disadvantages of incorporating his business.
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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