Your three friends from Wyoming inherited an old dude ranch. They now plan to turn it into a pasture for retired racehorses. Serenity Stables wants to open its doors by spring of 2020. After going to several small business seminars, your friends are certain they need limited liability. The high-risk, labor-intensive business will require a sizeable investment including an air-conditioned barn, several fenced-in pastures, and loads of animal feed. You explain to them that LLC ownership requires owners to pay self-employment taxes on the entire amount of earnings. You are fairly certain this is one tax liability your friends would like to avoid. You instead recommend

Question

Social Studies

Evan Juarez

27 November, 00:09

Your three friends from Wyoming inherited an old dude ranch. They now plan to turn it into a pasture for retired racehorses. Serenity Stables wants to open its doors by spring of 2020. After going to several small business seminars, your friends are certain they need limited liability. The high-risk, labor-intensive business will require a sizeable investment including an air-conditioned barn, several fenced-in pastures, and loads of animal feed. You explain to them that LLC ownership requires owners to pay self-employment taxes on the entire amount of earnings. You are fairly certain this is one tax liability your friends would like to avoid. You instead recommend

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Pranav Sutton · Answer 1

I will recommend that the self employment tax be taken into consideration because its belongs to the government.

Explanation: The Plan to turn the pasture into retired race horses stable is a good one but all the factors that would make it successfully should be considered by the three before a decision is being made.

factors - 1. The barn. 2. Horses. 3. Feeding of the Horses. 4. Insurance incase of theft or fire 5. Government Tax. 6. Health and Safety policy both staff and Horses.