Sole Proprietorship
What is the simplest example of a business owned and run by one person
Solo Proprietorship
who is personally responsible for all debts in a sole proprietorship
The owner
Sole proprietors report business income on this personal tax form.
Schedule C (Form 1040)
An advantage of a sole proprietorship is this—it’s quick and easy to start.
easy setup and full control?
This is a common example of a sole proprietorship you might find in your neighborhood.
local coffee shop or freelance designer?
What Buisnesses are owned by two or more people
who shares profits and losses
Partnership
These individuals own shares in a corporation and have voting rights.
shareholders
This business structure pays corporate income tax separately from its owners.
C-corporation
A major disadvantage of partnerships where all partners share responsibility is this.
unlimited joint liability
Shake Shack began as this type of business structure before expanding.
LLC (Limited Liability Company)
what business structure has owners known as shareholders
Corporation
In a partnership, this person actively manages the business and has unlimited liability.
general partner
LLCs usually avoid this by passing profits and losses to members’ personal tax returns.
double taxation
One benefit of an LLC that protects owners’ personal assets is this.
limited liability protection?
Apple and Microsoft are famous examples of this type of business structure.
C-corporation?
what type of business combines limited liability with pass through taxation
LLC
In a limited partnership, this type of partner has limited liability but no management control.
limited partner
S-corporations must file this IRS form to report income, but profits pass through to shareholders’ personal returns.
Form 1120S?
A key disadvantage of C-corporations that affects profits is this type of tax
double taxation
Law firms and medical practices often operate under this type of business ownership.
partnership?
what type of buisness is owned and controlled by its members
cooperative
In an LLC, the owners are called this and typically enjoy limited personal liability.
members
Partnerships file this informational tax form, but profits and losses pass through to partners’ individual returns.
Form 1065
This real-world problem can affect small businesses when choosing the wrong structure, such as personal asset risk or tax issues.
choosing a structure that doesn’t fit your business needs?
Many family-owned businesses use this business structure to avoid double taxation and limit shareholders.
S-corporation?