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Unformatted text preview: Business Structures and Entity Selection • Taxation – separate vs. flow-through (see hand notes) • Sole Proprietorship – single person business o Report income of CO as personal income, etc • General Partnership – default with 2 or more people o FORMATION – no formalities, very simple Need an agreement by 2+ people who will share 3 things • Profits • Management • Assets o Property Rights (ownership) Assets – (specific partnership property) • Property is not transferable by a partner without approval of other partners Management – default rules • All partners manage • 1 partner = 1 vote • majority rules… EXCEPT o certain things require unanimous approval examples – admit a new partner, sale of assets • not transferable Profits – (partnership interest) • Equally divided among partners regardless of capital contribution, hours worked, (UNLESS OTHERWISE STATED) • Receiving of profits CAN be transferred (if someone were to die for ex) o Termination – exit strategy...
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- Summer '10
- Business Ethics, Corporation, partner, Profits Management Assets, specific partnership property