Sole Proprietorship - A business that is owned and operated by one person., Liability Protection - Insurance against debt and actions of business., Unlimited Liability - Full responsibility for all debts and actions of business., Partnership - An unincorporated business with 2+ owners., General Partner - A participant in a partnership who has unlimited personal liability., Limited Partner - A partner whose liability is limited., Corporation - A business that is registered by a state and operates apart from its owners., C-Corporation - An entity that pays taxes on earnings., Shareholders - The owners of the corporation., Limited Liability - They are only liable only up to the amount of their individual investment., Subchapter S Corporation - A corporation that is taxed like a partnership., Nonprofit Corporation - A legal entity that makes money for reasons other than the owners’ profit., Limited Liability Company (LLC) - A company whose owners and managers enjoy limited liability and some tax benefits., One reason that people choose the corporate form is to... - Gain credibility, The difference between C-Corp and a Subchapter S Corp is... - C-Corp is under IRS Rules and S-Corp is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages., Why is a partnership agreement necessary? - Because it sets up the partnership for success by clearly outlining the business's day-to-day operations and the rights and responsibilities of each partner.,

Chapter 7

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