Business Organizations

Which of the following has one owner, unlimited liability, one decision-maker, and is fastest and easiest to start?

• General Partnership

• Corporation

• Sole Proprietorship

• LLC

Which of the following has "personhood", includes management from a "board of directors" or CEO, has perpetual (everlasting) "life", and is taxed TWICE?

• Sole Proprietorship

• General Partnership

• Corporation

• LLC

Which of the following has two or more owners, divides management decisions equally, and has equal liability spread across its multiple owners?

• Sole Proprietorship

• Corporation

• General Partnership

• LLC

Tom has a GREAT idea for a business but is really afraid of the litigious (lawsuits) nature of his type of business. Which type of business organization would you recommend for Tom?

• Sole Proprietorship

• Limited Partnership

• General Partnership

• Corporation

Sally wants to go into business. She has a unique understanding of the type of business she is going into. It would be rare that anyone else could make accurate decisions as she could. Which of the following would you recommend she NOT form for her business?

• Corporation

• Sole Proprietorship

• Limited Partnership

• Limited Liability Limited Partnership

Chester wants to go into business. He has a great idea that would be very popular. The problem is he does not have enough resources to start the business nor keep it running once he does. He needs investment. MOSTLY, he wants to avoid taxes as much as possible and is determined to NOT be double taxed by the government. Which type of business organization would you recommend for Chester?

• Sole Proprietorship

• General Partnership

• Corporation