Most Common Forms of Business Entity

The lecture series covers various state-recognized business entities, starting with sole proprietorships, which are not formal entities but a common form of business. It then discusses general partnerships, limited partnerships, and limited liability partnerships, highlighting their characteristics and legal requirements. The lecture also explores limited liability limited partnerships, limited liability companies, and corporations, detailing their structures, liability protections, and tax implications. Each entity type is compared in terms of formation, management, and operational flexibility.

What is the default form of doing business recognized by the state?

• General Partnership

• Sole Proprietorship

• Limited Liability Company

• Corporation

Which type of partnership requires at least one general partner and one limited partner?

• General Partnership

• Limited Partnership

• Limited Liability Partnership

• Sole Proprietorship

Which business entity is typically used by professional practitioners like lawyers and architects?

• Limited Liability Partnership

• Corporation

• Sole Proprietorship

• Limited Liability Company

What is a key characteristic of a Limited Liability Company?

• No tax flexibility

• Unlimited personal liability

• Mandatory state filing not required

• Ease of management structure

Which business entity has the ability to elect multiple forms of taxation?

• Corporation

• General Partnership

• Limited Partnership

• Sole Proprietorship