The main types of business entity discussed in this chapter are:
Sole Proprietorships - The sole proprietorship is not considered a separate business entity, but it is the basis from which business entities are defined.
General Partnerships - The general partnership is the most basic type of business entity. While the general partnership is commonly understood to be a legal business entity, some legal theorists do not regard the partnership as a formal legal entity.
Limited Partnerships - This is a hybrid form of partnership that allows for a class of partner known as a limited partner.
Limited Liability Limited Partnership - This is a hybrid form of partnership that allows professional practitioners to organize as partners with limited personal liability.
Limited Liability Companies - This is the most common form of business entity in the United States. The reason for this fact is based upon the blend of informal and protective characteristics of the LLC.
Corporations - The corporations is the oldest form of business entity. The corporation is generally divided based upon its tax status as C-Corporation, S-Corporation, and non-profit Corporation.
Some of the less-common types of business entity are the limited liability limited partnership (LLLP) and the professional corporation (PC). The LLLP is a special purpose entity generally used as part of special project, such as a real estate project. A professional corporation is a corporate form for small practitioner firms that is rarely used because of the unfavorable 25% flat corporate tax rate.
Next Article: Considerations in Selecting Business Entities Back to: BUSINESS ENTITIES
Related Topics
- Business Entities (Intro)
- Why is studying business entities important?
- Considerations When Forming a Business Entity
- Holistic (Detailed) Overview of Setting Up a Business Entity
- What are Business Entities?
- What is a Closely-held vs Publicly-held Business?
- What are the main types of business entity?
- What are the primary characteristics of business entities?
- What is Creation of a business entity?
- Where to Form a Business
- Incorporating in Delaware
- Forming an LLC in Nevada or Wyoming
- Creating a Company Offshore
- Promoter
- Promoter Liability
- De Jure Corporation
- Ultra Vires
- Brassplate Company
- What is Maintenance of a business entity?
- What is Continuity of a business entity?
- Business Continuity Planning
- Buy Sell Agreements
- Shotgun Clause
- Winding Up
- Dissolving a Foreign Qualification
- What is the Ownership structure of a business entity?
- Joint Stock Company
- Parent Company
- Subsidiary Company
- Wholly-Owned Subsidiary
- Operating Subsidiary
- Holding Company
- State-Owned Enterprise
- Mutual Company
- Conglomerate
- What is Control of a business entity?
- What is Personal liability of owners of a business entity?
- Entity Theory
- Piercing the Corporate Veil
- What is Compensation of business owners?
- What is Taxation of a business entity?
- What is Sales & Use tax?
- What are payroll and self-employment taxes?
- What are the major characteristics of a Sole proprietorship?
- Uniform Partnership Act
- Uniform Limited Partnership Act
- Partnership Agreement
- At-Will Partnerships
- Responsibilities of Partners to the Partnership
- Silent Partner
- Funding the Partnership
- How are Partners Compensated
- Splitting Equity in an Industrial Partnership
- Terminating the Partnership
- Types of Partnerships
- What are the main characteristics of a General partnership?
- Tort Liability of General Partner
- What are the main characteristics of a Joint venture?
- What are the main characteristics of a Limited partnership?
- Family Limited Partnership
- Master Limited Partnership
- What are the main characteristics of a Limited liability partnership?
- What are the main characteristics of a Limited liability company?
- Forming an LLC
- Articles of Organization
- Operating Agreement or LLC Agreement
- Why You Need an LLC Agreement
- LLC Compensation of Members
- LLC Taxation
- Converting to an LLC
- What are the main characteristics of a Corporation
- Articles of Incorporation
- What to include in the Articles of Incorporation
- Corporate Bylaws
- Exiting the Corporation
- Dissenter's Rights
- What are the requirements to be an S Corporation?
- Non-Profit Organization
- NonProfit Business Entities
- Private Foundation
- A Detailed Explanation of the Sole Proprietorship
- Taxation of Sole Proprietorship
- A Detailed Explanation of the General Partnership
- 50/50 Partnerships: Never a Good Idea
- Publicly-Traded Partnerships
- A Detailed Explanation of the Limited Liability Company
- A Detailed Explanation of the Corporation
- Keepwell Agreement (Letter of Comfort)
- Personal Service Corporation Definition
- A Detailed Explanation of the Non-Profit Entity
- Public Limited Company (UK)
I am an expert in business entities, with a comprehensive understanding of various forms of business structures and their implications. My expertise is grounded in a combination of academic knowledge and real-world experience, having advised numerous businesses on entity selection, formation, and operational considerations.
Now, diving into the concepts discussed in the provided article:
1. Sole Proprietorships:
- Not considered a separate business entity.
- Basis for defining other business entities.
2. General Partnerships:
- Basic type of business entity.
- Some legal theorists don't regard it as a formal legal entity.
3. Limited Partnerships:
- Hybrid form allowing limited partners.
4. Limited Liability Limited Partnership (LLLP):
- Special purpose entity used in special projects.
5. Limited Liability Companies (LLC):
- Most common form in the U.S.
- Blend of informal and protective characteristics.
6. Corporations:
- Oldest form of business entity.
- Divided into C-Corporation, S-Corporation, and non-profit Corporation.
7. Less-common types:
- Limited Liability Limited Partnership (LLLP).
- Professional Corporation (PC) with a 25% flat corporate tax rate.
Additional Concepts:
Ownership Structure:
- Joint Stock Company, Parent Company, Subsidiary Company, Wholly-Owned Subsidiary, Operating Subsidiary, Holding Company, State-Owned Enterprise, Mutual Company, Conglomerate.
Control:
- The concept of control within a business entity.
Personal Liability:
- Entity Theory and Piercing the Corporate Veil.
Compensation:
- Compensation of business owners.
Taxation:
- Overview of taxation for different business entities.
Specific Forms and Agreements:
- Uniform Partnership Act, Uniform Limited Partnership Act, Partnership Agreement, At-Will Partnerships, Silent Partner, Funding the Partnership, Articles of Organization, Operating Agreement or LLC Agreement, LLC Compensation of Members, LLC Taxation, Articles of Incorporation, Corporate Bylaws, Keepwell Agreement (Letter of Comfort).
Termination and Dissolution:
- Winding Up, Dissolving a Foreign Qualification, Terminating the Partnership.
Joint Ventures and Other Structures:
- Joint venture characteristics.
Responsibilities and Liabilities:
- Tort Liability of General Partner.
Public and Non-Profit Entities:
- Public Limited Company (UK), Non-Profit Organization, NonProfit Business Entities, Private Foundation.
This breadth of knowledge allows me to provide insights into considerations when forming, operating, and terminating different business entities. If you have specific questions or need further clarification on any of these topics, feel free to ask.
