SMG SM 131 Lecture Notes - Lecture 1: Sole Proprietorship, Double Taxation, Berkshire Hathaway
Document Summary
Things to consider when deciding business forms. C-corps pay a shit ton of tax, other forms might be better with less taxes. Sole proprietorship"s require owners to pay personal assets, c-corps" execs are protected. Business owned and managed by one person. Two or more people legally agree to become co-owners. Debts or damaged incurred by business are owner"s debts. Need to get more money with other entity types. Share management and pooled/complementary skills and knowledge. Only able to recover what the business has, no personal assets. Stock certificate is evidence of stock ownership. Dividends part of profits that firm may distribute to stockholders. Conflict with stockholders and board of directors. Corporate raiders buy up stock and then want to break apart. Can"t be from investments/other sources of revenue besides core. If s corp loses s status, it may not operate under it again for at least 5 years product.