Sole proprietorship
How many people own this busniess
1
How many people own this business.
2
The type of business organization that can sell stock to the public.
corporation
This type of business protects your personal assets while letting you pay taxes on your personal tax return.
LLC (Limited Liability Company)
This is a legally binding agreement between two or more people.
Contract
Easiest and (blank) to start
Cheapest
The legal document that partners sign to outline how decisions, profits, and losses will be shared.
Partnership Agreement
This protection ensures owners do not lose personal assets if the business goes bankrupt.
Limited liability
This specific setup is mostly used by licensed professionals like lawyers and doctors to protect partners from each other's mistakes.
LLP (Limited Liability Partnership)
The required exchange of something of value, like money or service, that makes a contract valid.
Consideration
23 million
The type of partner who handles the daily business operations and faces unlimited personal liability for the business debts.
General partner
The group of people elected by shareholders to make major decisions for the company
Board of Directors
This is the legal document that LLC owners write to explain how the business will run and share profits
Operating Agreement
This happens when one party breaks the agreement or fails to do what they promised.
Breach of contract
How is it taxed
taxed as pass-through entities
An investor partner whose liability is limited only to the money they put into the business, and who does not manage daily operations.
Limited partner
This happens when a corporation is taxed on its profits, and shareholders are taxed again on their dividends
Double taxation
Instead of "owners" or "shareholders," the people who own an LLC are called this.
Members
The rule that states you must be old enough and of sound mind to legally sign a contract.
Capacity
What personal assets can cover damages?
Bank accounts, savings and or property.
This disadvantage means that one partner can make a bad business deal that legally binds and financially hurts the other partners.
Mutual agency
The name for a share of ownership in a corporation.
Stock
The tax setup where business profits pass through to the owners' personal returns, avoiding corporate tax.
Pass-through taxation
This type of agreement cannot be enforced by a court because it is missing a legal requirement.
Void contract