Business structures

subchapter s corporation

- advanatages of both sole propreitorship and corporation - limitation: cant won subsidiaries, only us stockholder, limited number of stockholder

partnership

- general partnership - limited partnership

sole proprietorship characteristics

- is an unincorporated business owned by an individual - relationship to owner; is indistingushed, if owner dies, business dies - no government requirements

sole proprietorship advantages

- minimal capital requirements - keep all profits - control - tax savings -confidentiality - easiest to form

partnership advantages

- more access to capital - more management talent - ease of formation - tax benefits

article for partnership

- names and address, purpose, location, contributions of partners, compensation, dissolution, profits and losses, voting right

corporation

- regular corporation - subchapter s corporation

partnership characteristic

- the association between two or more people who carry on as co-owners - relationship to owner: entity is distinct from the partners - government requirements; most states require "article for partnership"

sole proprietorship - disadvantages

- unlimited financial liability - limited managment talent - few opportunities for employees - limited credit available - limited life

partnerships disadvantages

- unlimited financial liability (join and serverable) - personality conflicts - partnership life

stocks vs bonds

- voting rights, represents equity, more risk, pays dividends - no voting rights, represents debt, less risk, pays interest

limited libaility company (LLC)

ADV: limited financial liability

corporation advantages

Limited liability Unlimited life Separation of ownership and management Transfer of ownership is easy professional management

incorporation

articles of incorporation bylaws boards of directors

types of partners

general partners vs limited partners

order of payment in bankruptcy

governmnt layers employees creditors stockholder (preferred, then common)

do all corporations have stockholdes?

no, non profit no stock holders and no dividends

what is the difference between a not for profit corporation and a non profit corporation

nothing. same thing

corporation disadvantages

public disclosure double taxation costs of incorporation' motivation of stockholdes

types of businesses

sole proprietorship, partnership, corporation, limited liability company

do non profit corporations pay taxes

yes most times, real estate taxes, income tax sometimes