BUS 263 Lecture Notes - Lecture 3: Limited Liability Partnership, Sole Proprietorship, Uniform Partnership Act
Document Summary
There is no right or wrong form of business. 8 variables to compare: formality of organization. Most complex is limited partnership: capital and credit. Capital is what you put into the business. 2. 2. credit is amount you can borrow: management and control. Shareholders do not control: profit and loss (cash flow) Profit and loss is accounting concept: liability. Problem: if interest is nontransferable, you cannot accumulate value: dissolution. Issuing involving getting out of the entity and how that is done: taxes. How you are taxed and if there are returns. Definition: a person doing business in their own name. Formalities: none to set up because you are already recognized and labeled by the government, business may have requirements set up for you, dba (doing business as), artificial name, or assumed name. Instead of using your name, you come up with a name for your business: to use assumed name, go to the county office and file the paperwork.
