The contents of this chapter include all of the following: What form of ownership is best? Forms of doing business: setting up a proprietorship, setting up a “C” corporation, setting up a sub. S, partnerships, setting up a limited liability company (LLC); legal issues; comparison organization charts. | Copyright 2015 Jack M. Kaplan &Anthony C Warren Patterns of Entrepreneurship Management 5th Edition, Chapter 7 Setting up the Company Chapter 7 Ownership Questions Forms of Ownership Legal Issues Comparisons Copyright 2015 Jack M. Kaplan &Anthony C Warren Presentation Outline What form of Ownership is Best? Forms of Doing Business Setting Up a Proprietorship Setting Up a “C” Corporation Setting Up a Sub. S Partnerships Setting Up a Limited Liability Company (LLC) Legal Issues Comparison Organization Charts Chapter 7 Ownership Questions Forms of Ownership Legal Issues Comparisons Copyright 2015 Jack M. Kaplan &Anthony C Warren What Form of Ownership is Best? 1. How big can the business potentially become? 2. How much control do you need in the decision-making process of the company? 3. How much capital is needed to start the business? 4. What tax considerations are important? 5. In case of failure, to what extent are you willing to be personally responsible for debts created by the . | Copyright 2015 Jack M. Kaplan &Anthony C Warren Patterns of Entrepreneurship Management 5th Edition, Chapter 7 Setting up the Company Chapter 7 Ownership Questions Forms of Ownership Legal Issues Comparisons Copyright 2015 Jack M. Kaplan &Anthony C Warren Presentation Outline What form of Ownership is Best? Forms of Doing Business Setting Up a Proprietorship Setting Up a “C” Corporation Setting Up a Sub. S Partnerships Setting Up a Limited Liability Company (LLC) Legal Issues Comparison Organization Charts Chapter 7 Ownership Questions Forms of Ownership Legal Issues Comparisons Copyright 2015 Jack M. Kaplan &Anthony C Warren What Form of Ownership is Best? 1. How big can the business potentially become? 2. How much control do you need in the decision-making process of the company? 3. How much capital is needed to start the business? 4. What tax considerations are important? 5. In case of failure, to what extent are you willing to be personally responsible for debts created by the business? 6. Is it important that the business continue in case of the owner’s incapacity or death? Chapter 7 Ownership Questions Forms of Ownership Legal Issues Comparisons Ask yourself these questions: Copyright 2015 Jack M. Kaplan &Anthony C Warren Forms of Doing Business The legal form of the business is selected from: Sole Proprietorship, C-Corporation, S-Corporation, Partnership, Limited Liability Corporation (LLC) The form should be determined in light of the business’ short- and long-term needs’ Chapter 7 Ownership Questions Forms of Ownership Legal Issues Comparisons Copyright 2015 Jack M. Kaplan &Anthony C Warren Sole Proprietorship Overview: A Sole Proprietorship has a single owner and only requires local business licenses to open. Pros: Simple to create Low start up fees No special legal restrictions Cons: Unlimited personal liability Limited access to capital Lack of Continuity for the Business Chapter 7 Ownership Questions Forms of Ownership Legal Issues Comparisons .
