Submitted By je2012
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Extra Credits
CHENGLONG LI In Chapter 4, we have learned different forms of business ownerships, including sole proprietorships, partnerships, corporations, S corporations, and Limited Liability Company. And the article, “Tax Increase Would Hit Few Small Businesses”, (it is from New York Times business section, published on September 18, 2010) is about increasing tax affects these types of businesses. According to the article, 80 percent of America’s 32 million businesses are sole proprietorships. Sole proprietorship is the simplest form of business because it is a business that owned by one person, and easiest to start. It is more likely to be common in retailing, service, and agriculture, which is not required many employees. Moreover, one of the advantages of sole proprietorship is no special taxes. So a tax increase would not hurt proprietorships in general. Different from sole proprietorships, corporation is a large commercial organization. And one of the disadvantages is that double taxation. As corporation, it must pay a tax on their profits. And for stockholders, they also have to pay a tax on personal income as individuals. As a result, many wealthy taxpayers filed their income business as partnerships or S corporations so that they don’t need to pay double taxation. And they can make more profits to expand their businesses. In the article, it says that Mr. Thompson and his brother own primary aim company which has 29 Wendy’s fast-food