1. Shrine Treasurers Association

2. What are the Various Business Structures?
Sole Proprietorship
Partnership
Corporation
Limited Liability Partnership (LLP)
Limited Liability Corporation (LLC)

3. What is a Sole Proprietorship?
A sole proprietorship is a type of business entity that is owned and operated by one individual and in which there is no legal distinction between
the owner and the business

4. What is a Partnership?
A partnership is a business formed between two or more people who share in the profits and the liabilities

5. What is a Corporation?
An association of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of
its members

6. What is a Limited Liability Partnership?
is a partnership of one or more general partners, who manage the business, and one or more limited partners, who invest in the partnership but do not manage it

7. What is a Limited Liability Corporation?
A limited liability company is a type of business entity that combines the personal liability protection of a corporation with the tax benefits and simplicity of a partnership

8. Pros & Cons Sole Proprietorship Partnership Corporation
Limited Liability Partnership (LLP)
Limited Liability Corporation (LLC)

9. Sole Proprietorship Advantages:
You have complete control of the decision making of the business
Sale or transfer can only take place at your consent
No corporate tax payments
Minimal legal costs to form a sole proprietorship
Few formal business requirements

10. Sole Proprietorship Disadvantages: Personally liable for the business
Can not simply declare that the business was bankrupt and cut losses

11. Partnership Advantages: Two heads (or more) are better than one
Easy to establish and start-up costs are low
Greater borrowing capacity
Opportunity for income splitting
Partners’ business affairs are private
Limited external regulation
Easy to change your legal structure later if circumstances change.

12. Partnership Disadvantages: Liability for the debts is unlimited
Partners are ‘jointly and severally’ liable for the partnership’s debts
Risk of disagreements and friction among partners
Each partner is liable for actions by other partners
If partners join or leave, can be costly to value partnership assets for buy in or buy out

13. Corporation Advantages:
Liability of the owners is limited to their investment in the company. Only the owners' contribution is at stake rather than their personal assets
The corporation is considered a legal person with perpetual existence. It exists until it is liquidated
Death or change in ownership has no effect on the corporation
The ownership is represented by the number of share certificates held by a person, and this makes the transfer of ownership very easy

14. Corporation Disadvantages:
Establishing a corporation is a complex process
Shareholders delegate the governance function to a body of persons called board of directors. The board of directors hires management to look after the day to day affairs of the corporation. It is quite possible that the management may act to further their own interests rather than the interest of the owners of the corporation
In case of corporations there is double taxation. First of all the corporate income is taxed at a flat rate and then the dividends paid to the shareholders is taxed

15. Limited Liability Partnership (LLP)
Advantages:
Limited partnerships allow pass-through taxation
Losses limited to the money invested for limited partners making it easier to raise money
Partners have limited liability, from errors, omissions, negligence, or malpractice committed by other partners
By allowing limited partners to be responsible only for the capital invested in the partnership (and thus limiting personal liability), limited partnerships offer significant advantages as an investment vehicle.

16. Limited Liability Partnership (LLP)
Disadvantages:
However, limited partners do not have the same amount of control over a partnership as a general partner.

17. Limited Liability Corporation (LLC)
Advantages:
Like a corporation, an "LLC", is a separate and distinct legal entity
LLC can obtain a tax identification number, open a bank account and do business, all under its own name
Owners, known as members, have "limited liability", meaning that, under most circumstances, they are not personally liable for the debts and liabilities of the LLC
For U.S. federal income tax purposes, an LLC is treated by default as a pass-through entity

18. Limited Liability Corporation (LLC)
Disadvantages:
The principals of LLCs use many different titles—e.g., member, manager, managing member, managing director, chief executive officer, president, and partner. As such, it can be difficult to determine who actually has the authority to enter into a contract on the LLC's behalf
Many individuals and Judges do not understand and may find ways to “pierce the veil” to find personal liability

19. What is a Answer?
Control vs Liability

20. OPPORTUNITY TO BE WITH YOU
Thank You
for Opportunity to be with You !
Questions?
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OPPORTUNITY TO BE WITH YOU
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