MGRL-1100 Chapter Notes - Chapter 6: French Foreign Legion, Franchise Tax, Horizontal Integration
9 May 2016
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Chapter 6: business formation: choosing the form that fits. 6. 1- business ownership options: the big four sole proprietorship- a form of business ownership with a single owner who usually actively manages the company. Corporation- for of business ownership in which the business is considered a legal entity that is separate and distinct from its owners. Articles of incorporation- the document filed with a state government to establish the existence of a new corporation limited liability - when owners are not personally liable for claims against their firm. Owners with limited liability may lose their investment in the company, but their personal assets are protected. limited liability company (llc) - a form of business ownership that offers both limited liability to its owners and flexible tax treatment. Sole proprietorship advantages: ease of formation, retention of control, pride of ownership, retention of profits, possible tax advantage.
