Choosing the Right Business Entity

The video tutorial explains the different types of business entities, including sole proprietorships, partnerships, LLCs, and corporations. It covers key considerations such as continuity, ownership, control, liability, and taxation. The tutorial highlights the default nature of partnerships, the formalities required for LLCs and corporations, and the tax implications of each entity type. It also discusses the importance of limited personal liability and the differences between S and C corporations.

What is the default business entity when two or more people carry on commercial activity for profit or loss?

What happens to a partnership if one partner leaves?

What are the key differences in continuity between a partnership and a corporation?

How does ownership and control differ in a partnership compared to a corporation?

What is the significance of limited personal liability in business entities?

Explain the taxation differences between a partnership and an S corporation.

What considerations should a small business take into account when choosing a business entity?