Introduction to basic business structures for new business owners. Sole Proprietorship, Partnership, Corporation, and Limited Liability Company.

1. Business Structures 101
Presented by:
Ambrose Moses, III
Attorney and Counselor at Law
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2. How to Contact Us.
Ambrose Moses, III
Attorney & Counselor at Law
(614)418-7898
info@MosesLaw.pro
www.MosesLaw.pro
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3. Welcome
Ambrose Moses, III
Attorney at Law
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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.
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5. Business Structure
One of your first decisions as
an entrepreneur is what
business structure to establish
for your company.
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6. Business Structure
What are the options?
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7. Business Structure
The Options
Sole Proprietorship
Partnership
Corporation
Limited Liability Company
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8. Business Structure
Basic Considerations
Ownership
Liability
Taxation
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9. Business Structure
Basic Considerations
Ownership
Who owns the business?
What did they give for their ownership?
Who controls the business?
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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?
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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?
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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?
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13. Business Structure
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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
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15. Business Structure
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16. What is a Partnership?
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.
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17. Business Structure
Partnership
Ownership –Two or more persons (Partners)
Liability – Passes through to Partners
Taxation – Passes through to Partners
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18. Business Structure
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19. What is a Corporation?
The Corporation is the most
formal Business Structure.
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20. What is a Corporation?
The corporation must have:
Shareholders
Board of Directors
Officers
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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.
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22. What is a Complete
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.
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23. Business Structure
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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.
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25. Business Structure
S-Corporation
The income of an S-corporation generally is
taxed to the shareholders rather than to the
corporation itself.
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26. Business Structure
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27. What is an LLC?
LLC = Limited Liability Company
An LLC is a new and popular business structure in
Ohio.
An LLC is a combination or hybrid business structure.
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28. Business Structure
Limited Liability Company (LLC)
Ownership – Owned by one or more persons
(Members)
Liability – Members not liable for LLC debts
Taxation – Taxed as Sole Proprietorship, Partnership,
or Corporation
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29. What is a Complete 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.
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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
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31. How to Contact Us.
Ambrose Moses, III
Attorney & Counselor at Law
(614)418-7898
info@MosesLaw.pro
www.MosesLaw.pro
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