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
