BASIC BUSINESS

TYPES OF BUSINESS OWNERSHIP

• SOLE PROPRIETORSHIP

• PARTNERSHIP

• CORPORATIONS• C-CORP

• S-CORP

• LIMITED LIABILITY

SOLE PROPRIETOR• OWNED AND OPERATED BY ONE PERSON

• EASY TO CREATE

• RECEIVES ALL PROFITS, INCURS ANY LOSSES, AND IS LIABLE FOR THE DEBTS OF BUSINESS

SOLE PROPRIETORSHIPADVANTAG

ES

• EASY AND INEXPENSIVE TO CREATE

• OWNER RECEIVES ALL PROFITS

• LEAST REGULATED FORM OF OWNERSHIP

• BUSINESS PAYS NO TAXES. OWNER PAYS A PERSONAL INCOME TAX, WHICH IS A LOWER RATE.

DISADVANTAGES

• UNLIMITED LIABILITY

• FULL RESPONSIBILITY FOR ALL DEBTS

• OWNERS PERSONAL ASSETS ARE AT RISK

• MAY HAVE INSUFFICIENT SKILLS

• UPON DEATH, THE BUSINESS DISSOLVES

PARTNERSHIP

• A BUSINESS WITH TWO OR MORE OWNERS

• PARTNERS DO NOT HAVE TO SHARE A BUSINESS EQUALLY

• PARTNERSHIP AGREEMENT

PARTNERSHIPADVANTAGES

• INEXPENSIVE AND EASY TO CREATE

• SHARE IDEAS, ABILITIES, AND FINANCIAL OBLIGATIONS

• OWNERS PAY TAXES AS PERSONAL INCOME

DISADVANTAGES

• DIFFICULTY IN DISSOLVING PARTNERSHIP

• PERSONALITY CONFLICTS

• PARTNERS ARE HELD LIABLE FOR EACH OTHER’S ACTIONS

CORPORATION

• REGISTERED BY THE STATE AND OPERATES APART FROM ITS OWNERS

• LIVES ON AFTER THE OWNERS DIE OR HAVE SOLD INTEREST

• OWNERSHIP IS REPRESENTED BY SHARES OF STOCK, PUBLIC OR PRIVATE

CORPORATIONADVANTAGES

• SEPARATE LEGAL ENTITIES FROM OWNERS

• PERPETUAL EXISTENCE

• SHAREHOLDER’S LIABILITY IS LIMITED TO AMOUNT INVESTED

DISADVANTAGES• EXPENSIVE TO START AND REQUIRES

A LOT OF LEGAL PAPERWORK - MUST HIRE ATTORNEYS

• OWNERS ARE SEEMINGLY DOUBLE-TAXED• BUSINESS PROFITS ARE TAXED AT A

HIGHER RATE

• OWNER’S INCOME FROM THE BUSINESS IS TAXED AS PERSONAL INCOME

CORPORATIONSC-CORPORATION

• MOST COMMON FOR LARGE BUSINESSES

• SHAREHOLDERS ARE OWNERS OF CORP.

• REQUIRED TO HAVE AN ELECTED BOARD OF DIRECTORS TO MAKE DECISIONS

• EMPLOYEE BENEFITS

S-CORPORATION

• OWNERS OF SMALLER COMPANIES - LIABILITY PROTECTION OF A CORP., BUT AVOID DOUBLE TAX

• PROFITS ARE TAXED ONCE AT SHAREHOLDER’S PERSONAL TAX RATE

• SHAREHOLDERS LIABLE TO AMOUNT INVESTED

• FOUNDERS GENERALLY HOLD MAJORITY OF STOCK

LIMITED LIABILITY COMPANY

• LIMITED LIABILITY LIKE A CORPORATION, BUT MORE FLEXIBLE

• PASS-THROUGH INCOME TAXATION LIKE A PARTNERSHIP OR SOLE PROPRIETORSHIP

• GREAT FOR COMPANIES WITH A SINGLE OWNER

COPYRIGHT

• COPYRIGHT IS A FORM OF PROTECTION PROVIDED BY THE LAWS OF THE UNITED STATES TO THE CREATORS OF "ORIGINAL WORKS" INCLUDING LITERARY WORKS, MOVIES, MUSICAL WORKS, SOUND RECORDINGS, PAINTINGS, PHOTOGRAPHS, SOFTWARE, LIVE PERFORMANCES, AND TELEVISION OR SOUND BROADCASTS. THIS PROTECTION IS AVAILABLE TO BOTH PUBLISHED AND UNPUBLISHED WORKS.

TRADEMARK

• A TRADEMARK IS ANY NAME, SYMBOL, FIGURE, LETTER, WORD, OR MARK ADOPTED AND USED BY A MANUFACTURER OR MERCHANT IN ORDER TO DESIGNATE HIS OR HER GOODS AND TO DISTINGUISH THEM FROM THOSE MANUFACTURED OR SOLD BY OTHERS.

• A TRADEMARK IS A PROPRIETARY TERM THAT IS USUALLY REGISTERED WITH THE PATENT AND TRADEMARK OFFICE TO ASSURE ITS EXCLUSIVE USE BY ITS OWNER.

PATENT

• A PATENT IS THE EXCLUSIVE RIGHT GRANTED BY A GOVERNMENT TO AN INVENTOR TO MANUFACTURE, USE, OR SELL AN INVENTION FOR A CERTAIN NUMBER OF YEARS.

• USED FOR INVENTIONS OR A PROCESS

REFERENCES

• HTTP://WWW.SCHOOLS.UTAH.GOV/CTE/MARKETING_RESOURCES_ENTREPRENEURSHIP.HTML

• HTTP://SMALLBUSINESS.FINDLAW.COM/INTELLECTUAL-PROPERTY/WHAT-IS-COPYRIGHT.HTML/

• HTTP://DICTIONARY.REFERENCE.COM/BROWSE/TRADEMARK?S=T

• HTTP://DICTIONARY.REFERENCE.COM/BROWSE/PATENT