1. “C” Corporation Unlimited owners (shareholders) Unlimited owners (shareholders) No personal liability for shareholders No personal liability for shareholders Taxed on earnings at corporate level Taxed on earnings at corporate level Shareholders taxed on any dividends distributed Shareholders taxed on any dividends distributed Shareholders purchase stock Shareholders purchase stock Board of Directors – overall management, officers – day to day responsibility Board of Directors – overall management, officers – day to day responsibility

2. “S” Corporation Up to 75 shareholders Up to 75 shareholders No personal liability No personal liability Entity NOT taxed, shareholders taxed- called “pass through” taxation Entity NOT taxed, shareholders taxed- called “pass through” taxation Shareholders purchase stock Shareholders purchase stock Board of Directors – overall management, officers – day to day responsibility Board of Directors – overall management, officers – day to day responsibility

3. Sole Proprietorship One Owner One Owner Unlimited personal liability Unlimited personal liability All taxation occurs through sole proprietor All taxation occurs through sole proprietor All funding comes from owner All funding comes from owner All management done by owner All management done by owner

4. General or Limited* Partnership Unlimited number of general partners Unlimited number of general partners Unlimited personal liability of all partners Unlimited personal liability of all partners All taxation occurs through each partner All taxation occurs through each partner All funding comes from partners All funding comes from partners All management done by partners All management done by partners ** If it’s a limited partnership, some partners do not equally share in management ** If it’s a limited partnership, some partners do not equally share in management

5. LLC: Limited Liability Company Unlimited number of members allowed Unlimited number of members allowed No personal liability No personal liability Generally, entity not taxed as profit and loss is passed through to members Generally, entity not taxed as profit and loss is passed through to members Members contribute funds Members contribute funds Management is determined by an agreement Management is determined by an agreement

6. BUSINESS SUCCESS/FAILURE Read the article, take notes on each business Read the article, take notes on each business Determine … what business type (of the six we discussed) do you think this business falls under? Determine … what business type (of the six we discussed) do you think this business falls under? Choose … a form of business ownership is best for this business? Choose … a form of business ownership is best for this business?