QST LA 245 Chapter Notes - Chapter 18: Limited Liability Partnership, Sole Proprietorship, Uniform Partnership Act
23 Jul 2018
School
Department
Course
Professor
Document Summary
Chapter 18: starting a business: llcs and other options. A sole proprietorship is an unincorporated business owned by a single person. Easy and inexpensive to create and operate. No need to hire a lawyer or register with the government. You"re not required to file a separate tax return all profits and losses are reported on the owner"s personal return. The owner of the business is responsible for all of the business"s debts. The owner of a sole proprietorship has limited options for financing her business: debt is the most common source of working capital. The law that regulates them is well developed. State laws regulate corporations, but federal statutes determine their tax status. Transferability of interests: partnership interests aren"t transferable without the permission of the other partners, whereas corporate stock can be bought and sold easily. Duration: corporations have perpetual existence: they can continue without their founders.
