GB110 Chapter Notes - Chapter 7: Limited Liability Company, Limited Liability Partnership, Business Judgment Rule
14 Feb 2018
School
Course
Professor
Document Summary
Sole proprietorship: a proprietor is someone who has legal title to property (such as a business) Their financial exposure is restricted to their capital investment: most states require the preparation of a written partnership agreement for a limited partnership, unpopular due to the cost of complying with state and federal laws. Llc"s members may include individuals, corporations, and other limited liability companies. K-1: an llc is allowed to choose how it will be treated for tax purposes (either a corporation or a partnership, termination, an llc terminates automatically by operation of law when one member leaves. Starting a corporation of the owners: a promoter is commonly used to describe the person or persons who start a business. Shareholders: the shareholders of a corporation are the owners of the corporation, they provide initial capital and subsequent capital for the business to start and sustain.
