Business Ownership by Keyla Caceres Hernandez https://padlet.com/02kcaceres/yd02nlkebsr4 Keyla Caceres en-us 2018-10-01 13:05:04 UTC 2026-02-14 16:02:12 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Bagshop.png Sole Proprietorship 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287576905 Simplest business in which anyone can operate business.
It is no legal entity. 
It refers to the person who owns the business and is personally responsible for its debts.]]> 2018-10-01 13:10:11 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287576905 Example 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287579560
  •  'Nancy's Nail Salon.'
  • If business runs into financial trouble, creditors can bring lawsuits against the business owner.
    • ]]>     2018-10-01 13:14:31 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287579560     Positives 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287581032
  • Can operate under the name of its owner or under a fictitious name.
  • Ease of setup, need only register his or her name and secure local licenses, and it's ready to go.
  • Nominal cost.

    • ]]>     2018-10-01 13:16:49 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287581032     Negatives 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287582778
  • The owner remains personally liable for all the business's debts.
  • Owner has to pay the business debts with his or her own money.

    • ]]>     2018-10-01 13:19:32 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287582778     02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287586657 2018-10-01 13:25:05 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287586657 Partnership 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287587855 Formal arrangement in which two or more parties cooperate to manage and operate a business.]]> 2018-10-01 13:26:53 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287587855 Positives 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287588889
  • Various partnership arrangements are possible.
  • All partners might share liabilities and profits equally.
  • Partners are not considered employees for tax purposes.
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  • All partners might share liabilities and profits equally.
  • Some partners may have limited liability. 
    • ]]>     2018-10-01 13:29:37 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287589662     Example 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287592572 Business such as:
    •  Apple + Hermes
    • BMW + Montblanc
    • Balmain + H&M
    have being partner up with other people.
    ]]>     2018-10-01 13:33:31 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287592572     02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287594764 2018-10-01 13:36:30 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287594764 Corporation 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287595078 Legal entity that is separate and distinct from its owners.]]> 2018-10-01 13:36:57 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287595078 Positives 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287595944
  • Corporations enjoy most of the rights and responsibilities that an individual possesses.
  • Shareholders may take part in the profits through dividends and the stock appreciation.
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  • A corporation is created when it is incorporated by a group of shareholders who have ownership of the corporation.
  • They are not personally liable for the company's debts.
    • ]]>     2018-10-01 13:38:19 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287596034     Example 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287596119 Has responsibilities such as:
    • Enter contracts. 
    • Loan and borrow money. sue and be sued.
    • Hire employees. 
    • Own assets and pay taxes.
    ]]>     2018-10-01 13:38:26 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287596119     02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287601469 2018-10-01 13:45:44 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287601469 Limited Liability Company (LLC) 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287601808 A corporate structure whereby the members of the company are not personally liable for the company's debts or liabilities.

    ]]>     2018-10-01 13:46:18 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287601808     Positives 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287602005
  • Are hybrid entities 
  • Combine the characteristics of a corporation and a partnership.
  • LLCs have some attractive features.
  • Provides more flexibility along with the protection,
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  • LLC may not be a suitable option when the founder's objective to   become a publicly listed company
  • LLC has to be dissolved upon the death or bankruptcy of a member, unlike a corporation.
    • ]]>     2018-10-01 13:46:52 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287602174     Examples 02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287602260
  • The profits become the members' income, and they then pay individual income tax on those profits. This means that members have full exemption from personally liability for business debts and obligations.
  • While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships.
    • ]]>     2018-10-01 13:47:00 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287602260     02kcaceres https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287607539 2018-10-01 13:54:29 UTC https://padlet.com/02kcaceres/yd02nlkebsr4/wish/287607539