FIN 331 Lecture Notes - Lecture 9: Limited Liability Company, Fiduciary, Sole Proprietorship
22 Apr 2016
School
Department
Course
Professor
Document Summary
If i want to sell lemonade in a parking lot, i am a sole proprietor. All personal assets are liable/put at risk. Voluntary association of two or more people to conduct business for profit. Can create under the general partnership act. Have to go to the state to create. Partnership for project: limited liability company, corporation. Subchapter s- responsible for the profits and loss of the corporation. Shareholders: owners, elect the directors of directors, have no fiduciary duty to the company. Board of directors: appoint officers, have fiduciary responsibility to the corporation. Private corporation: share are public traded. Government corporation: separate for the state but not for profit. Closely held: few shareholders (family, friends, no market to sell shares. For profit: most companies are for profit. Non-profit: 501 (3, not going to pay taxes, can make profit but shouldn"t distribute it. Domestic corporation: doing business in the state of incorporation.
