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Your Client Has Operated a Sole Proprietorship for Several Years

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Essay

Your client has operated a sole proprietorship for several years, and is now interested in raising capital for expansion. considering forming either a C corporation or an LLC.
a. Describe the treatment of an LLC and discuss any advantages the LLC offers over the C corporation.
b. Assume instead the client has previously operated as a C corporation. Describe the tax consequences of converting to an LLC.


Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character and influence their behavior and attitudes.

Superego

A component of Freud's psychoanalytic theory representing the ethical and moral dimensions of personality, internalizing societal standards of right and wrong.

Social-Cognitive Perspective

A psychological approach that emphasizes the role of cognitive processes in understanding social behavior.

Inner Traits

Characteristic qualities or attributes that make up an individual’s personality, often considered to be internal and stable.

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