Our second learning objective in session 1 is the forms of business organization. What kind of business organization can I form if I decide to start a company? What types of organization are owned by one person? A single person simplest organization type to form and has unlimited liability. This is the sole proprietorship and some of you may have started a business already where you were the sole proprietor. We'll talk about the types of liability affiliated with each and the cost of each and so on. What type of organization has two or more people? Two or more owners and unlimited liability. The answer is a partnership. So you may have formed a partnership with a friend or colleague. What type of organization is a legal person separate and distinct from its owners and has limited liability? This is a corporation. So these are the three key types. There are others and we'll go over one other variation of these here in a minute. Things to consider when forming an organization: 1. How much does it cost? I've formed several corporations in my life and for as little as $200, I went to an attorney downtown and was able to start a corporation to manage distressed real estate. Again, these vary and in the larger city, you may pay a little bit more. 2. What about the continuity? How stable is the organization? 3. Who controls the organization comes into consideration. 4. What are the personal liabilities, a key consideration? 5. How about the taxability or taxation of the organization's earnings? How are they taxed? Each of these is different in the sole proprietorship. Some of the advantages of a sole proprietorship are that it is very simple to form. You can basically use your social security number...
Award-winning PDF software
Video instructions and help with filling out and completing Form 2220 Organizations
