Uploaded byAmbrose Moses, III
Legal Business Structures 101
The document presents a webinar by Ambrose Moses, III, focusing on various business structures such as sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). It outlines key considerations for each structure, including ownership, liability, and taxation. The document emphasizes the importance of understanding these elements when establishing a business.
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Legal Business Structures 101
- 1. Business Structures 101 Presented by: Ambrose Moses, III Attorney and Counselor at Law 1
- 2. How to ContactUs. Ambrose Moses, III Attorney & Counselor at Law (614)418-7898 info@MosesLaw.pro www.MosesLaw.pro 2
- 3. Welcome Ambrose Moses, III Attorney at Law 3
- 4. Disclaimer There is no attorney-client relationship being established as a result of this webinar. The presenter is providing legal information, not legal advice. 4
- 5. Business Structure One of your first decisions as an entrepreneur is what business structure to establish for your company. 5
- 6. Business Structure What arethe options? 6
- 7. Business Structure The Options Sole Proprietorship Partnership Corporation Limited Liability Company 7
- 8. Business Structure Basic Considerations Ownership Liability Taxation 8
- 9. Business Structure Basic Considerations Ownership Who owns the business? What did they give for their ownership? Who controls the business? 9
- 10. Business Structure Basic Considerations Ownership How will the company raise the capital (i.e. money) needed to begin and operate business? Personal savings, family & friend gifts, investments, loans, credit cards, crowdfunding? 10
- 11. Business Structure Basic Considerations Liability Who is responsible for the business debts and claims against the company? How do debts and claims against the business owners impact the company? 11
- 12. Business Structure Basic Considerations Taxation How is the business treated for tax purposes? Who reports the profits and losses of the business operations to the IRS? 12
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- 14. Business Structure Sole Proprietorship Ownership – Single Individual Liability – Owner Liable for All Debts Taxation – Owner responsible for All tax consequences of the business 14
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- 16. What is aPartnership? A Partnership is an association of two or more persons to carry on as co-owners a business for profit, whether or not the persons intend to form a partnership. 16
- 17. Business Structure Partnership Ownership –Two or more persons (Partners) Liability – Passes through to Partners Taxation – Passes through to Partners 17
- 18.
- 19. What is aCorporation? The Corporation is the most formal Business Structure. 19
- 20. What is aCorporation? The corporation must have: Shareholders Board of Directors Officers 20
- 21. Business Structure Corporation Ownership – Owned by one or more persons (Shareholders) Liability – Owners not liable for corporate debts Taxation- Owners not responsible for corporate taxes. 21
- 22. What is aComplete Corporation? A complete corporation is one that is properly formed and has created and maintains all of the required documentation to evidence its existence, ownership, and decisions. 22
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- 24. Business Structure S-Corporation Ownership – Owned by one or more persons (Shareholders) Liability – Owners not liable for corporate debts Taxation- Tax consequences pass through to Shareholders. 24
- 25. Business Structure S-Corporation Theincome of an S-corporation generally is taxed to the shareholders rather than to the corporation itself. 25
- 26.
- 27. What is anLLC? LLC = Limited Liability Company An LLC is a new and popular business structure in Ohio. An LLC is a combination or hybrid business structure. 27
- 28. Business Structure Limited LiabilityCompany (LLC) Ownership – Owned by one or more persons (Members) Liability – Members not liable for LLC debts Taxation – Taxed as Sole Proprietorship, Partnership, or Corporation 28
- 29. What is aComplete LLC? A complete LLC is one that is properly formed and has created and maintains all of the required documentation to evidence its existence, ownership, and decisions. 29
- 30. Liability Issue Claim: $35,000 Assets: $25,000 Still Owed: $10,000 Owner Pays the $10,000: Sole Proprietorship - Yes Partnership - Yes Corporation - No LLC - No 30
- 31. How to ContactUs. Ambrose Moses, III Attorney & Counselor at Law (614)418-7898 info@MosesLaw.pro www.MosesLaw.pro 33