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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