Sole Proprietorship
How many people are involved in a Sole Proprietorship?
One
Name the 3 types of partnerships
General Partnership, Limited Partnership, Limited Liability Partnership
Owners in a corporation are known as?
Shareholders
What type of company is a type of business ownership where there can be a single or multiple owners, like a partnership, but you have an option to be taxed like a corporation.
Limited Liability Company
True or False: The purpose of a non-profit is something other than making a profit and it benefits the public.
True
When does being considered a Sole Proprietor start?
The moment someone starts offering goods and services to others, you are considered a Sole Proprietorship.
What type of partnership is where both partners are active in the business and share the workload.
General Partnership
Who makes decisions for the corporation?
Board of Directors
How many owners do LLC's have?
1 or more
What is a disadvantage of non-profits?
Known for having more than usual paperwork and record-keeping.
Non-profits are required to submit annual reports of any activity to the government.
Tax-exempt comes with strict guidelines on what you can do with any profits you earn.
Sole Proprietorships must obtain an EIN to start the business. What does the EIN stand for?
Employee Identification Number
Which type of partnership has both partners sharing the workload and being active *But they are not liable for each others actions*
Limited Liability Partnership
Corporations are a type of business that can do what? (3 possible answers)
Own and sell property, Sell stocks (ownership rights), Sue or be sued
Who pays the "parent company"
franchisee
List 3 of the 4 examples of the purpose of a non-profit that we discussed in class.
charity, education, scientific work, religious work
How much does your business have to make to pay quarterly taxes to the IRS?
$1,000
If a limited partner starts to actively participate within the business, what would they have to become?
General Partner
3 Advantages of Corporations
Easier to start up the business when many owners and many different assets are brought in.
You can sell shares of stock which brings in capital.
Corporations don’t usually dissolve.
Owners are not responsible for the business’s debts.
What is one of the most difficult franchises to open?
*discussed in class*
Chic Fil A
3 advantages of a non-profit.
Owners have limited liability and are very well protected.
Easy to get funding. Corporations or Individuals can give you money for a tax write-off.
Known for having tax-exempt status
Name 3 advantages of a Sole Proprietorship
Get to work by yourself and don’t have to ask for anyone else's opinion.
You keep all the profit.
The person can own the business for any duration of time and sell it whenever they want to.
Income is taxed as personal income.
You can discontinue your business whenever you want.
How can you dissolve or terminate partnerships?
Buy each other out or put it in the partnership agreement
How many times are corporations taxed in a year?
2 Times
What do you have to file when operating an LLC that you don't have to file in a partnership?
LLC Articles of Organization Form
LLC operating agreement
Annual Report
What are the rules that govern your nonprofit?
Bylaws