BL CONCEPTS

limited liability partnership (LLP)

protects individual partners from liability for each other’s mistakes

partnership vs corporation

partnerships share management and profit directly

“pass-through” taxation

profits go directly to owners' personal income tax

franchisee vs franchisor

franchisee buys and operates the location

articles of organization

the document filed with the state to create an LLC

piercing the corporate veil

when courts hold business owners personally liable because they misused the business structure

public vs close corporation

public sells stock openly

distributorship

franchisee sells franchisor’s product but runs independently

chain-style operation

franchisee follows franchisor’s business model

manufacturing franchise

franchisee makes the product using franchisor’s formula or process