Business Structures

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

• Partnership

• Nonprofit Corporation

• Sole Proprietorship

• Corporation

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

• Nonprofit Corporation

• Partnership

• Corporation

• Sole Proprietorship

Mission Lawn Service has grown from just one person, a truck, and a bed full of lawn equipment to a four truck operation with four employees on each truck. They now cut twice as many lawns in a week as Brayan, the owner, used to cut in a month on his own. With all the added employees and vehicles, Brayan is looking for a way to reduce his liability

Which of the following business structures is his BEST option?

• Corporation

• Partnership

• Nonprofit Corporation

• 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 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?

• Sole Proprietorship

• Corporation

• Partnership

• All of these feature "pass through" taxation

True or False...

A Partnership offers more liability protection than a Corporation.

• True

• False

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

• Corporation

• Partnership

• Nonprofit Corporation

• Sole Proprietorship

True or False...

Partnerships are better than Sole Proprietorships because Partnerships are able to issue stock.

• True

• False