MANAGMNT 260 Lecture 15: Management 12.2
21 Mar 2016
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Jerry sells lemonade outside isenberg, single person doing business, recognized as business person, no protection from liability. Sign all contracts on individual capacity, jerry gets all income, and pays taxes on it as individual. Ex. partnership: 2 classmates go across street and sell lemonade at, Whitmore=partnership don"t get into one by accident- generally not good to have!) one for all, all for one. Ex. old fashioned business entity, 2 dif types, general partner and limited partnership. Usually used for investment fund or venture capital fund. Limited partners shielded from liability, and no risk beyond what they invested. S corporation exactly like c, but files and election to mail to. Irs, wants to be s corp to irs and gets approved. S corp has pass through entity (get more money to keep in the end) (opposite of a tax payer, not tax payer. Two members llc, make , allocate to partner 1, to partner 2.
