LLC
What is an owner called?
Member
How many owners can own a sole proprietorship?
One
Are personal assets at risk in a corporation?
No
How many people are owners in a partnership?
Two or more
Who owns a Corporation?
Share holders
Can there be one or more people who own an LLC?
Yes
How much Liability is there in a sole proprietorship?
100%
Do S corporations pay federal taxes at the corporate level or is it just a pass through for shareholders?
Pass through for shareholders
How much liability do the partners have?
100%
What is the restriction on who can own shares?
None
What does the LLC acronym stand for?
Limited Liability Company
Who makes all of the capital gains in a Sole Proprietorship?
The owner or sole proprietor
Can shareholders be employees of the business and draw salaries?
Yes
Which partner receives profits and which one pays for the liabilities?
Are shareholders personal assets at risk if the company goes under?
No only the corporations assets
Who manages an LLC?
It can be member managed or manager managed
What federal registration needs to be filled out to start a sole proprietorship?
None
Are there adverse tax consequences for selling shares of an S Corporation?
No it is a straightforward transfer of ownership
How do people enter into a partnership?
Contribution to the business
Who runs A C Corporation
Directors
How do profits flow through an LLC?
Profits and losses flow through members according to the operating agreement
For taxes what is a sole proprietorship considered?
A pass through entity
What method of accounting do S Corporations usually practice?
Cash method
Paying out the other partner and filling out dissolution paperwork.
How can one become a share holder in a C corporation?
Purchase stock within the company