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25 Cards in this Set
- Front
- Back
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Sole Proprietorship - Creation
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File a Fictitious Name Registration if name of business is different than that of the owner
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Limited Partnership - Creation
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Must file a Certificate of Limited Partnership.
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Subchapter S Corporation - Creation
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Must File a form 2553 with the IRS.
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Limited Liability Company (LLC) - Creation
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Must file Articles of Corporation.
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Sole Proprietorship - Continuity/Termination
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Terminates when owner stops doing business and/or upon death.
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Sole Proprietorship - Control
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Controlled by a single owner.
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Sole Proprietorship - Taxation
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Pays schedule "C" taxes (personal income tax)
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Sole Proprietorship - Personal Liability
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Owner has unlimited liability for debts of the business.
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Partnership - Continuity/Termination
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Terminates at the expiration of the term of partnership or when the business objectives have been reached.
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Partnership - Control
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Controlled by two or more entities.
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Partnership - Taxation
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Pays no taxes but files IRS form. Individual partners file Schedule K-1 which includes their income/loss.
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Partnership -Personal Liability
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Partners have unlimited liability for debts of the business.
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Limited Partnership - Continuity/Termination
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Same as partnership: Terminates at the expiration of the term of partnership or when the business objectives have been reached.
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Limited Partnership - Control
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Run by general partners without active participation from limited partners.
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Limited Partnership - Personal Liability
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Liability of limited partner is restricted to that person's investment. General partners have unlimited liability.
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Limited Liability Partnership - Control
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Run by general partners WITH active participation from limited liability partners.
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Limited Liability Partnership - Personal Liability
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Partners are not personally liable for malpractice claims of the other partners.
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Family Limited Liability Partnership - Control
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Owner supervises wealthy family's estate. Family members are limited partners.
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Corporation - Continuity/Termination
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Since corporation is not its own person, its status is not changed by the death or sale of stock by a shareholder.
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Corporation - Control
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Board of Directors are elected by shareholders. They then select corporate officers.
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Corporation - Taxation
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Double taxation.
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Corporation - Personal Liability
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Shareholders own the corporation but are not personally liable for the payment of debt in the absence of personal guarantee.
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Subchapter S Corporation - Taxation
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Profits passed directly to shareholders and taxed to them. This eliminates double taxation.
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Limited Liability Company - Control
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Members (Owners) control business.
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Limited Liability Company - Taxation
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Pays no taxes but files IRS form. Individual partners file Schedule K-1 which includes their income/loss.
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