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Five forms of Doing Business (Sole Proprietorship (Transfer ownership…
Five forms of Doing Business
Sole Proprietorship
Single Owner
Liable
Personal funds
Transfer ownership
Yes
Ends
death
retirment
Owner disabled
For profit
Easy Taxes
Schedule C
Partnership
Two or more
General
owners liable
personal funds
unlimited damages
Limited
amount invested
no more
person plus corporaton
two corporations
No agreement
Equal partners
personal funds
Corporation
Legal entity
Insulates owners
personal assets protected
Inadequate records
Owners Liable
3 teired
stockholders elect
directors elect
officers run
Easy
capital/funding
Limited Liability Corporation
Not
Corporation
Partnership
Pay W-2
Does
Benefits
Pass through taxes
corporate liability protection
flexibility partnership
file taxes pass through
File with state
article organization
operating agreement
Non-profit
Provides
service community
makes profit
may pay workers fairly
may not distribute net income
does not pay income tax