UTAH Contractor Business and Law Exam 2024 Correctly Answered.
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Course
UTAH.
Institution
UTAH.
UTAH Contractor Business and Law Exam 2024 Correctly Answered.
Setting Up A Business in Utah - CORRECT ANSWER 1-1 (Business Structure)
- Register the business in Utah with the Department of Commerce Division of Corporations and Commercial Code.
- To form an entity use the One Stop Business Re...
- Agreement between two individuals and based around contributing some asset.
- Each Partner shares in the profits and loses of company.
Advantages: Limited Partnerships
- A limited partner's financial responsibility is limited to liabilities of the business.
,Disadvantages: Joint & Individual Liability
- Partners retain full, shared liability among owners.
S Corporation - CORRECT ANSWER 1-3, 1-4, 1-7 (Business Structure)
- Limited to 100 persons
- Only one class of stock
- File taxes under form 1120s
ADVANTAGES:
- Liability protection: S corps hold all business liability.
- Tax Benefits: only wages are subject to employment tax.
DISADVANTAGES:
- Increased regulation: S corps require routine meetings with minutes taken at the meeting.
- Restriction of Ownership: restricted on size and membership
C Corporation - CORRECT ANSWER 1-4, 1-5, and 1-7 (Business Structure)
- An independent legal entity owned by shareholders but the shareholders are not liable for the actions
and debts of the corporation.
- Corporations use form 1120 or 1120-A income tax return
Advantages:
- Liability Protection: corporations create a new legal entity.
- Stock: able to issue stocks, and ownership is transferred through sale of stocks.
- Tax Advantages: corporations file taxes separate from the owners
Disadvantages:
- Double Taxation: Corporate profits are taxed at corporate level and when dividends are paid to
shareholders.
, Limited Liability Company - CORRECT ANSWER 1-5 and 1-7 (Business Structure)
- Entitiy formed under state law by filing articles of organizations. An LLC may be classified for tax
purposes as a partnership, cooperation, or entity disregarded as an entity separate from its owner by
applying the rules.
- No tax paid at entity level. Profits and losses are passed through to the members.
General Liability - CORRECT ANSWER 2-1 (Insurance/Bonds)
- General Liability Insurance is issued to protect against liability claim for bodily injury and property
damage arising out of premises, operations, products, and completed operations.
- Liability insurance is designed to offer specific protection against THIRD PARTY (NON EMPLOYEE)
INSURANCE CLAIMS.
- Commercial property insurance protects the property of the business, such as the buildings and
equipment. Often property insurance policies are written to cover specific risks, such as FIRE insurance,
FLOOD insurance, or EARTHQUAKE insurance. These are called NAMED PERIL OR ALL-RISK POLICIES.
Certificate of Insurance - CORRECT ANSWER 2-2 (Insurance/Bonds)
- The insurance company providing coverage wants a certificate of insurance because it helps
necessitate that the risk be shared WITH EACH PARTICIPATING ENTITY.
- You need a certificate of insurance to get licensed.
- the coverage needs to be $100,000/incident and $300,00 in total.
- Government project bonds are governed by law. Federal government projects are governed by the
"Miller Act," which dictates that performance and payment bonds are required for all federal
construction projects over $100,000.
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