1-10 Business Ownership Review

For business owners wanting to maximize their access to capital, they should pursue this form of ownership:

• Limited Liability Company

• Limited Liability Partnership

• S Corp

• C Corp

For business owners wanting to minimize their liability, they should pursue this form of ownership:

• LLC or Sole Proprietorship

• LLC or S Corp

• LLP or General Partnership

• C Corp or Sole Proprietorship

Laws vary from state to state, but many local governments require a DBA to be filed for Sole Proprietorships. What does DBA stand for?

• Doing Business As

• Debts Books Assets

• Design Brand Agreement

• Debt Borrower Assignment

For business owners wanting to operate as a Corporation, the first step they must do is:

• Build a Board of Directors

• Develop Articles of Incorporation

• File for a charter in the state where the business is headquartered

• Develop an Operating Agreement

An Operating Agreement will include the following:

• the names of the members and the managers of the business

• the scope or purpose of the business

• the date of formation

• all of these

Advantages of Sole Proprietorships as a form of business ownership include:

• double taxation

• limited capital

• quick decision making control

• limited liability

Disadvantages of Sole Proprietorships as a form of business ownership include:

• double taxation

• limited capital

• quick decision-making control

• limited liability

Advantages of General Partnerships as a form of business ownership include:

• difficult to end

• limited capital

• combined partner capabilities

• limited liability

Advantages of Corporations as a form of business ownership include:

• less regulation

• limited capital

• double taxation

• limited liability

Disadvantages of Corporations as a form of business ownership include:

• less regulation

• limited capital

• double taxation

• limited liability