Crash Course Video -Business Structures and Legal Requirements

What is the main purpose of registering your business?

• To get sponsorships for your podcast

• To book your catering company for multiple weekends

• To legally establish your business and obtain necessary licenses and permits

• To sell your 100th bottle of Slug-be-Gone

Which business structure is owned and run by one person?

• Partnership

• Corporation

• Limited Liability Company (LLC)

• Sole Proprietorship

What is a disadvantage of a sole proprietorship?

• Limited liability

• Difficulty in raising investment money

• Separation of personal and business assets

• No tax write-offs for business expenses

Which business structure allows for the sale of stock to the public?

• Partnership

• Limited Liability Company (LLC)

• Benefit Corporation (B-corp)

• Corporation (C-corp)

What is a benefit of a Limited Liability Partnership (LLP)?

• Limited liability for all partners

• Ease of formation

• No need for extensive record-keeping

• Pass-through status for taxes

Which business structure focuses on social good and allows the CEO to make decisions for social good even if they are less profitable?

• Corporation (C-corp)

• Limited Liability Company (LLC)

• Benefit Corporation (B-corp)

• Partnership

What is a disadvantage of a cooperative (co-op)?

• Limited liability for stockholders

• Ease of getting outside investment

• Slow decision-making process

• Double taxation for stockholders

What is a requirement for a nonprofit corporation?

• Paying state and federal taxes on profits

• Distributing profits to stockholders

• Focusing on social good

• Limited liability for owners

What is the first step in registering your business?

• Obtaining an Employer Identification Number

• Choosing a business structure

• Filing taxes

• Getting a business license

What should you do if you're unsure about the legal and tax requirements for your business?

• Ask a trustworthy attorney or tax accountant for advice

• Ignore the requirements and proceed with your business

• Register as a sole proprietorship to avoid complications

• Choose a business structure randomly