LAW 3102 Lecture Notes - Lecture 24: Sole Proprietorship, Double Taxation
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Published on 16 Apr 2018
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Department
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Professor
April 16, 2018
Law 3102
Corporations: most critical/ most useful entities
1. Sole proprietorship: just by going into the business
a. fictitious business name
2. General pship
a. working with somebody else, you formed a pship
b. you do not need to register
i. Limited pship
1. more protection for a limited partner
2. you do have to register
3. must be one general partner (who is not protected)
3. LLC
a. limited liability company: gives you some protection
b. if someone were to sue there is a corporate veil
c. personal assets vs. business assets separate
d. pass through entities
e. if business takes a loss you can claim that in ur own taxes
4. S corp/ C corp
a. strongest corporate veils
b. separates you from corporation
c. C corp: double taxation
i. more complicated
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● Volume wise → Corporations are must bigger
● more incremental in economy
● structure is more complex
● Limited liability:what’s the most you can lose as an investor?
○ up to what you have invested in the share
● easy transferability of shares
○ easy to do! publicly traded company, always demand to transfer
● perpetual existence
○ generally speaking are forever!