Idol Show

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Basic Business OrganizationBasic Business Organization

Have you watched the video? Have you watched the video? (YouTube – (YouTube – Basic Business Organizations)Basic Business Organizations)

Have you read the text? Have you read the text? (Chapter 1 – (Chapter 1 – Contractor’s Business Reference Manual)Contractor’s Business Reference Manual)

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Review of the VideoReview of the Video

Sole ProprietorshipSole Proprietorship

PartnershipPartnership

CorporationCorporation

From Creative Commons – posted by Digg

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PartnershipPartnership

General PartnershipGeneral Partnership

Limited PartnershipLimited Partnership

Limited Liability CompanyLimited Liability Company

From www.InMagine.com

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General PartnershipGeneral Partnership

Greater financial resourcesGreater financial resources

Additional talents for the businessAdditional talents for the business

Shared responsibilitiesShared responsibilities

Profits taxes only onceProfits taxes only once

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General PartnershipGeneral Partnership

Each partner personally liable for Each partner personally liable for debtsdebts

Ends with the death or bankruptcy of Ends with the death or bankruptcy of anyany partner partner

No partnership interest can be No partnership interest can be transferred without the consent of alltransferred without the consent of all

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Limited PartnershipLimited Partnership One general partnerOne general partner

• Responsible for day to day operationsResponsible for day to day operations

• Makes all financial decisionsMakes all financial decisions

• Unlimited liability for debtsUnlimited liability for debts

Limited partnersLimited partners

• Invests money, property or bothInvests money, property or both

• Do not participate in day to day operationsDo not participate in day to day operations

• Limited liability (investment)Limited liability (investment)Image from www.InMagine.com

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Limited Liability CompanyLimited Liability Company

Best of both worldsBest of both worlds• Pass thru taxationPass thru taxation

• ““Corporate veil” protectionCorporate veil” protection

But there is a downsideBut there is a downside• More complicated to createMore complicated to create

• More record keeping requiredMore record keeping required

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Subchapter S CorporationSubchapter S Corporation Liability protection Liability protection

Pass thru taxationPass thru taxation

Limited to 75 shareholdersLimited to 75 shareholders

Limited fringe benefits for share-Limited fringe benefits for share-

holdersholders

Image from www.InMagine.com

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That’s all folks!That’s all folks!