Business Organizations

Sole proprietorship

an unincorporated business owned by a single person

ex. Lemonade stand

sole proprietorship profile

• you are the business

• unlimited liability (it’s just you)

• personal taxation on profits/losses

• ease of setup

• lack of continuity

partnerships

two people make a business together

• we are now soul linked

• if something happens to one person the other is fucked

Geneal partnership

an agreement by 2+ people to carry on as business co-owners

• don’t pay taxes

• each co-owner is a general liability partner

joint and several liability

if one person in your partnership messes up, anyone in the partnership can be sued for their personal assets

limited partnerships

having both general (active) and limited (passive/investor) partners

• only general partners are personally liable for debts

Limited Liability partnerships

designed for professionals (Ex. doctors, dentists) who won’t get the full liability protections of regular corperations, but personal liability for partner’s actions is limited

corporations

a separate legal entity; “making” a new person but it’s a company

• “please meet my new friend, Dunkin Donuts coffee co.”

corporation profile

• can hold debt, own bank accounts, be prosecuted

• liability if shareholders is limited to company investment

• LOTS of taxation

LLC (limited Liability Corporations)

can be created with pretty much nay configuration you want

• has limited liability

• still not a lot of certainty, not a lot of law in the books yet

• very tax flexible

Nonprofits & Friends

• new/ybrid entities

• unassociated coperations

• idk man

Mechanics of setup

1. artles of incoperation

   1. requirements set by statute

2. bylaws.operating agreement

3. ongoing reports nad certifications

franchises

franchise agreement sets forth rights and obligations of parties, not and action business entity type

• distorbutorships (auto)

• chain-style

• manufacturing/processing plant operation

franchise agreement process

1. set forth rights and responsibilities

2. lump sum

3. business premises (physical location stuff)

4. location/franchise territory

5. business organization

6. quality control

7. sourcing

8. termination and dispute resolution remedies

9. I’m literally falling asleep writing this and it’s 9AM