The company profits are $100,000 Individual tax rate is 20%. The corporate tax rate is 35%. The dividend tax is 15%.

1. As a sole proprietor how much do you take home after paying the taxman?

2. As a partnership of two, how much do you take home?

3. As a corporation with 10 shareholders, how much do you take home?

Scenario 1: You want to expand Beautiful Dreamer by acquiring another spa. The other spa will cost $2 million.

What would happen if the business you are planning to acquire was each of the following: The question refers to how do you change ownership from a business you are purchasing from its owners to your company, as the buyer of the other spa company. The ownership of the business being sold is structured differently in each question. There is no need to calculate any numbers in this question. It is about decision-making and financial ownership.>

 4. Sole proprietorship

 5. Partnership with one other person

 6. Corporation

Scenario 2: A large corporate entity is looking for an innovative spa concept.

What happens if you want to be taken over? What happens if you don’t want to be taken over.

 7. Sole proprietorship

 8. Partnership with one other person

 9. Corporation

Scenario 3: You want to retire to California. What would happen if the business Beautiful Dreamer was each of the following? The question is about ownership and decision-making.

 10. proprietorship

 11. Partnership with one other person

 12. Corporation

Scenario 4: Someone sues you for $1 million because your product turned their skin green. Your company Beautiful Dreamer is worth $500,000. What would happen if the business was each of the following? The question is about legal liability in the 3 different structures.

13. proprietorship

14. Partnership with one other person

15. Corporation

Answer rating: 100% (QA)

1 As a sole proprietor you would take home 80000 after paying the taxman 2 As a partnership of two y... View the full answer