An individual owns a retail business that is unincorporated.The business earns about $150,000 per year, all of which is needed by the individual for his personal living ex- penses.The individual is considering incorporating this business.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

There can be a small tax advantage associated with incorporation, as the corporation may be eligible for lower tax rates on business income and the ability to write off certain expenses. However, the individual will also face additional costs such as incorporating fees and ongoing accounting and legal expenses.

An Individual Owns a Retail Business That Is Unincorporated