Term
Sole Proprietorship:
Definition |
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Definition
| A bussiness that is indistinguishable from its owner. |
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Term
Sole Proprietorship:
Entrepreneur |
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Definition
An individual that organinzes a business, assumes the risks, for the sake of making a profit.
(often equivilant to a sole proprietor) |
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Term
Sole Proprietorship:
Formation |
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Definition
Most easily formed bussiness organization.
Requires a Vendor's lisense and possibly a business certificate (if you plan to have a name other than your own for the bussiness). |
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Term
Sole Proprietorship:
Control |
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Definition
| The owner has complete autonomy |
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Term
Sole Proprietorship:
Liability |
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Definition
"Unlimited Personal"
(all personal assests availiable to satisfy debt) |
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Term
Sole Proprietorship:
Profits/Taxes |
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Definition
| Considered as personal income and is taxed as such. |
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Term
Sole Proprietorship:
Contiunation of business / Sales |
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Definition
When the owner dies, declares bankruptcy, or is declared insane the business ceases.
(Physical assests and goodwill may be sold)
*Inheritance tax is charged |
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Term
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Definition
| 2 or more people join together to carry on a bussiness jointly. (excluding: a syndicate, group, pool, joint venture, or other unincorporated organization that carries on a bussiness, financial operation, or venture) |
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Term
General Partenership:
Formation |
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Definition
Business certificate and federal tax ID
(don't pay tax but still have to file)
Partenership agreement |
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Term
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Definition
| Sates the basic information, contributions, and distributions, resposibilites, and other nessicary guidelines (ie disgreement resolutions) for the bussiness. |
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Term
General Partenership:
Control |
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Definition
| Law of agency: each partener is the agent of partenership and also for the other partener(s) while acting in the normal course of business. |
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Term
General Partenership:
Liability |
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Definition
"Unlimited Personal"
(may be limited by articles of partenership)
(Joint and Several liability) |
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Term
| Joint and Several Liability |
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Definition
a claimant may pursue an obligation angainst any one party as if they were jointly liable and the defendant must sort out their respective portions of liability and payment.
(Joint- each is responisble up to the full amt)
(Several- each is responsible only for repsective portion based on articles) |
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Term
General Partenership:
Profits and taxes |
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Definition
| Partenership itself is not taxed but must report profits or losses on IRS form 1065 (information return). Pofits are taxed at individual partener's rates after distribution. |
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Term
General Partenership:
Continuation of Bussiness/Sales |
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Definition
"Right of first refusal"
the other partener has the right to buy out the business first. |
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Term
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Definition
| Provides surviving partener(s) cash to purchase deceased partener's portion of business. |
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