Business Entities

Flashcards covering key concepts related to business entities, including entity choice drivers, types of legal forms, organizing documents, and liability.

Entity Choice

Driven by limits to liability, ease of formation/dissolution, taxation, and ownership rewards/compensation.

Sole Proprietorship

A type of business entity with no organizing document needed unless using a fictitious name.

Partnership

A business entity that necessitates a partnership agreement, though it is not legally required.

Limited Partnership (LP)

A business entity that requires a Certificate of Limited Partnership and a Partnership Agreement.

Limited Liability Partnership (LLP)

A business entity that requires a Statement of Registration and a Partnership Agreement; restricted to certain business types.

Corporation

A business entity requiring Articles of Incorporation and Corporate Bylaws.

S Corporation

A business entity that requires Articles of Incorporation, a Federal S Election on Form 2553, and Corporate Bylaws.

Limited Liability Company (LLC)

A business entity requiring a Certificate of Organization and a Member Operating Agreement.

General Partnership Liability

Partners have no liability protection and face potential joint and several liability.

Corporation Liability

Liability is limited to the shareholder's investment.

Agency (in Corporations)

Legal arrangement between shareholders and the board of directors, and between the board and the officers.