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

• C-Corp

• B-Corp

• 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 limited liability and easier fundraising?

• Partnership

• C-Corp

• B-Corp

• Sole proprietorship

What is a benefit of a C-corp?

• Limited liability

• Ability to sell stock to the public

• Focus on social good

• Pass-through status for taxes

Which business structure focuses on social good?

• Partnership

• C-Corp

• B-Corp

• Sole proprietorship

What is a characteristic of an LLC?

• Limited liability

• Ability to sell stock to the public

• Democracy in decision-making

• Tax-exempt status

Which business structure is suitable for a business that wants to do charity work?

• Partnership

• C-Corp

• B-Corp

• Nonprofit corporation

What is a requirement for starting a nonprofit corporation?

• Extensive record-keeping

• Ability to distribute profits to stockholders

• Double taxation for stockholders

• Limited liability

What is an advantage of a limited liability company (LLC)?

• Ability to transform into a corporation

• Democracy in decision-making

• Tax-exempt status

• Ability to sell stock to the public