Business structure notes - Business structure notes 1...

This preview shows page 1 out of 1 page.

Business structure notes – 1 individual: NEVER a partnership 2 or more : NEVER a sole proprietorship - Stone Sober Law Firm example – LLC or corporation (LLC most feasible if working alone) Once decided about type of structure, file forms with MN secretary of states office - Cost $135 mailed, $155 in person - Check name availability & reserve - No forms to file for GP or SP - Articles of organization: LLC - Can protect trademark (phrases and logo) Partnership agreement: - Capital contribution: states what each person brings to the partnership o Specific contribution (e.g. capital, in kind [property], services [management]) o Agreed upon cash valuation of contribution (how much their contribution
Image of page 1

Unformatted text preview: was worth o Percentage distribution of profit and loss (RUPA – equal between partners regardless of level of contribution; partnership agreement can state otherwise and specify levels – e.g. 70/30)-Control-Dissolution-In a GP, no compensation for working (under RUPA) o Have to add into agreement (e.g. “Managing partner receives $40,000 before any distributions are made”) Financial vs. Managerial interest-Financial: assign to other-Managerial: need permission from all -Creditors cannot get managerial interests, only financial distributions given to that partner Default rules: RUPA (revised uniform partnership act)...
View Full Document

  • Spring '11
  • Dr.Bjorke
  • Business, Business Law, Types of companies, Uniform Partnership Act, partnership agreement, Rupa

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern