BUS 1000 Lecture Notes - Lecture 1: C Corporation, Double Taxation, Sole Proprietorship

• School: University of Denver
• Department: Business Core
• Course: BUS 1000
• Professor: Haag Stephen

Document Summary

Sole proprietorship: a business owned and operated by 1 person: advantages: easy and inexpensive. Easy to dissolve: disadvantages: all on you. Partnership: two or more people share ownership: types: Limited partnership: most of the partners have limited liability, not often used for retail or service businesses. Joint venture: acts like a general partnership, but is for a limited period: advantages: Earnings go right to the tax returns. Losses, risk, liability divided among all the partners: disadvantages: Some benefits are not deductible from business income tax. Corporation: a unique entity with a life of its own. Shareholders elect a board of directors: advantages: Takes more time and money to set up. Monitored by federal, state and local agencies. Dividends not deductible from business income taxes: types: Avoids double taxation: corporation not taxed on profits. Additional accountability: requires the director and officers to consider the impact of their decisions with shareholders and society/environment.