Business Structure Concepts

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What is Business Structure?

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The legal organization of a business, which determines various factors including the legal protections for the owner's personal assets, tax obligations, and registration requirements.

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What is a Sole Proprietorship?

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A type of business structure where a single individual owns and operates an unincorporated business, with no legal distinction between the owner's personal and business assets.

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What is a Partnership?

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A business structure formed by two or more individuals who share ownership. Partnerships can be classified into types such as limited partnerships (LPs) and limited liability partnerships (LLPs), which influence the liability each partner faces.

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What is a Limited Liability Corporation (LLC)?

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A business structure that combines the characteristics of a corporation and a sole proprietorship or partnership, offering personal asset protection for owners while allowing profits and losses to be taxed on personal tax returns.

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What is a Corporation?

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A legal entity that operates independently from its owners, providing the highest level of personal asset protection. Corporations can be classified as C corporations or S corporations based on their tax treatment.

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What does DBA stand for?

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Doing Business As; a registration that allows an individual or business to operate under a name different from their legal business name.

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What is an EIN?

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Employer Identification Number; a federal tax ID number issued by the IRS, used to identify a business entity for tax purposes.

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What are Federal Agencies?

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Government bodies at the national level involved in regulating business activities and ensuring compliance with federal laws.

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What are State Agencies?

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Local government bodies that enforce state laws and regulations, requiring businesses to register for necessary licenses or permits.

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What is a Registered Agent?

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An individual or business designated to receive important legal documents and notifications on behalf of a company.