Sole Proprietorships
How the business is owned, controlled and operated.
What is Single Ownership?
If the partnership can not meet its debts, partners' personal assets can be used to satisfy those debts.
What is Unlimited Liability?
The model for Limited Partnership legislation in most states.
What is the Revised Uniform Limited Partnership Act?
The LLP can own assets, enter into contracts, and continue to exist independently of its partners.
What is a Separate Legal Entity?
One or more members may be active in management and has limited liability for both tort claims and contractual claims.
What are Limited Liability Companies?
There is no legal distinction between the owner and the business. The owner is responsible for all business debts and obligations.
What is Unlimited Personal Liability?
Partners have equal rights to control operations, which also implies equal responsibility for the business's activities.
What is shared Management and Control?
This must be filed with the Secretary of State to establish the Limited Partnership.
What is a Certificate of Limited Partnership?
In these states, a partner is not personally liable for either the wrongful or negligent acts or omissions or other partners or for commercial, contractual or other obligations of the partnership.
What are Full Shield States?
When an LLC elects a committee or Board to govern the corporation, the LLC is referred to as this
What is a manager managed LLC?
The owner's personal funds can be used to pay business debts and vice versa.
What is no legal separation?
Document containing specific terms concerning distribution of profits and how losses are shared.
What is the Partnership Agreement?
What are the two types of partners that a Limited Partnership must have.
A partner that manages the business and one that invests in the business.
A partner in a LLP will be found personally liable for a lease agreement made by one of the partners when this happens
What is, when the LLP is formed in a Partial Shield State?
To make and amend bylaws, to purchase real property, to enter into contracts, to elect directors and appoint officers, and to make donations are all examples of this
What are Corporate Powers?
It is the easiest and least expensive business structure to set up and can be quickly closed down without complex legal formalities.
What is Simplicity of Formation and Dissolution?
This means the partnerships income is taxed at the individual partner level and reported on their personal tax return.
What is No Separate Legal Entity?
Attracting Capital, Limited Liability, Easy Transferability of Interest, Continuity of Existence and Pass-Through Taxation.
What are Advantages of Limited Partnerships?
Filing Fees, liability insurance, and limited business types.
What are disadvantages of LLP's?
A corporation whose shares are usually sold to the public
What is a Public Corporation?
The sole proprietor has full control over all aspects of the business, from operations and management to decision-making.
What is Complete Owner Control?
The type of partnership formed to carry out a single enterprise for profit.
What is a Joint Venture?
A limited partnership formed in one state and doing business in another state is called what in the second state.
What is a Foreign Limited Partnership?
A partner in a LLP is personally liable for the negligent act of another partner.
Who has direct supervision or control over the negligent partner?
Before the Corporation is formed, a promoter can raise capital by selling this.
What are Preincorporation Share Subscriptions?