Business Structures

I started a pressure washing business last year. I printed some business cards for cheap and made some flyers that I hung in local stores with a QR code that is linked to a Google Calendar so people can schedule appointments. My business doesn't pay taxes, but I file the profits as income on my taxes. What business structure am I using?

• Partnership

• Cooperative

• Sole Proprietorship

• C-Corporation

I started a medical technology company with a friend from college, and the business has grown to the point where revenues are well in excess of $100,000,000 per year. He is the scientific and engineering mind, while I am the marketer. Due to the nature of the business, we sought to create a completely separate legal entity, even though it cost much more in taxes. Next month, we are going to go public on the NASDAQ stock exchange. Which business structure are we using?

• S-Corporation

• Limited Partnership

• C-Corporation

• Limited Liability Company (LLC)

My lawn service has grown from just me, my truck, and a bed full of lawn equipment to a four truck operation with four employees on each truck. We now cut twice as many lawns in a week as I used to cut in a month on my own. With all the added employees and vehicles, I am looking for a way to reduce my liability, but I don't want the expense of a corporation.

Which of the following business structures is my BEST option?

• Limited Liability Company (LLC)

• Limited Liability Partnership (LLP)

• Cooperative

• Sole Proprietorship

True or False...

Banks are eager to lend money to Sole Proprietorships because they know they'll get their money back.

• True

• False

True or False...

A C-Corporation provides the most liability protection because it creates a completely separate legal entity.

• True

• False

True or False...

A Non-Profit Corporation is a company that does not make any profit.

• True

• False

There are several types of business structures feature "pass through" taxation, which means that there are not taxes paid by the company, but by the business owner through personal income taxes.

Which of the following business structures DO NOT feature "pass through" taxation?

• S-Corporation

• C-Corporation

• Partnership

• Sole Proprietorship

True or False...

A Limited Liability Company offers more liability protection than a S-Corporation.

• True

• False

Which of the following is the easiest business structure to start?

• S-Corporation

• Cooperative

• Limited Liability Company (LLC)

• Sole Proprietorship

True or False...

There is no limit to the number of stockholders that an S-Corporation can have.

• True

• False