FM 116 Lecture Notes - Lecture 4: Limited Liability Partnership, Sole Proprietorship, Franchise Tax

• School: FIT
• Department: Fashion Business Management
• Course: FM 116
• Professor: Priebe- Anderson

Document Summary

Review of etiquette name: class: class number: News: toysrus going bankrupt, time frame important to try and get people to send them product, Corporations: lia(cid:271)ilit(cid:455): clai(cid:373)s that outsiders ha(cid:448)e agai(cid:374)st a fir(cid:373)"s or perso(cid:374)"s assets, or (cid:271)ei(cid:374)g responsible for something, especially by law. Limited financial resources; banks not likely to offer loans. Unlimited liability; no legal separation between company and you. Ability to share responsibilities and capitalize on complimentary skills. C corporations (llc: offers limited liability to all of its stock holders, requires filing articles of inc, paying fiing fees, and adopting of corporate bylaws. Institutional investors: organizations that pools contributions from investors, clients, or depositors and uses these funds to buy stocks and securities. Internal revenue service does not tax s corporations separately. With only rare exceptions, each stockholder must be a u. s. citizen. Not all states allow formation fo this type of corporation. Earnings exempt from federal income and state taxes.