Sole Proprietorship
Who owns and operates a sole proprietorship?
Single individual
Who owns a non-profit?
No one owns a non-profit.
Advantages and disadvantages of this business structure?
Advantages: Shared responsibilities, combined expertise, and possibly more access to capital.
Disadvantages: Shared liability, potential conflications between partners, and limited transferability of ownership.
What do the taxes look like?
Unique tax treatment in some jurisdictions, often with tax benefits for members.
Examples of a LLC?
Pepsi-Cola, Nike, Sony.
Advantages and disadvantages of a sole proprietorship?
Advantages: Simplicity, full control, and minimal regulatory requirements.
Disadvantages: Personal liability, limited access to capital, and difficulty in transferring ownership.
Advantages & Disadvantages?
Advantages: Member ownership, shared decision making, could be potential for collective benefits.
Disadvantages: It's expensive and time consuming to start a non-profit, many regulations and restrictions, and loss of control.
Who owns a partnership?
Owned by 2 or more individuals who share profits and losses.
Advantages & Disadvantages?
Advantages: Member ownership, shared decision making, could be possibility of collective benefits.
Disadvantages: Complex governance structures and slower decision-making decisions.
Taxation?
LLC's are choose to be taxed as a partnership or corporation, which in turn provides flexibility in tax treatment.
Give an example of a sole proprietorship?
Photographer
Tutor
Graphic Designer
Landscaper
What does taxation look like for a non-profit.
For the organization: Federal and state taxes are exempted.
For the people: Donors who give money may be able to deduct the donations on their tax returns.
Example(s) of a partnership?
Law firms, physician groups, real estate investment firms
Example(s) of a CO-OP?
Ocean Spray, Ace Hardware, Land O' Lakes, and Best Western.
Liability?
Members have limited personal liability. Their personal assets are protected from business debts.
What is taxation like for this business structure?
Business income is reported on the owner's personal tax return.
What does the liability look like?
What is the liability of a business structure like this?
Partners have unlimited personal liabilities for business debts and obligations.
What is the liability for this business structure?
Members typically have limited personal liability.
Who owns a LLC?
Can be owned by individuals(single-member LLCs) or global corporations.
What is the owners liability?
They have unlimited personal liability for business debts and obligations
Example of a non-profit?
UNICEF, American Red Cross, Doctors without Borders.
What do the taxes work for partnership?
Business income is typically passed through partners and reported on their personal tax returns.
Who owns a CO-OP?
Owned and democratically controlled by the members (customers, employees, or producers) who benefit from the business's services and products.
Advantages & Disadvantages:
Advantages: Limited liability, flexible management, and pass-through taxation.
Disadvantages: More paperwork and formalities compared to sole proprietorships and partnerships.