By: Peyton Busby A form of general partnership that provides an individual partner protection against personal liability for certain partnership obligations. Facts

• LLP provides each of its individual partners protection against personal liability for certain partnership liabilities.

Advantages: Flexibility and tax advantages

Disadvantages: Limitations on creation, not obligated to consult with other participants in certain business agreements. The cooperation of two or more individuals or businesses in which each agrees to share profit, loss and control in a specific enterprise

Facts

Advantages Disadvantages • Able to use larger • Share profit funds • Diminished Control • Sharing the • Undesired outcome economic risk of the quality of a • Able to widen your product or project economic scope without spending to much money a regular corporation that has between 1 and 100 shareholders and that passes- through net income or losses to shareholders under in accordance with Internal Revenue Code Facts

Advantages Disadvantages • Taxes are paid once • May require more • Personal assets are bookkeeping and separate accounting • Up to 100 • Cost more to prepare shareholders tax returns • Payroll A Limited Liability Company (LLC) is a business structure allowed by state statute Facts

Advantages Disadvantages • Limited personal • Earnings are liability for the debts generally self- and actions of the employment tax LLC. • 50% or more of the capital and profit • More like a interest are sold or partnership exchanged • No maximum • Cannot take numbers of advantage of members incentive stock options one specifically formed for purposes other than operating a profit-seeking business Facts

Advantages Disadvantages • Can be exempt from • Increase paperwork payment of federal • Meetings must be corporate income recorded tax • Tax-exempt status • Same limited must be filed at both liability protection the federal and state as for profit levels corporations A farm, business, or other organization that is owned and run jointly by its members, who share the profits or benefits Facts

Advantages Disadvantages • Driven by needs of its • Limited resources members • Cash trading • Pay a fee to join • Lack of secrecy

An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities Facts

Advantages Disadvantages • Based on a proven • Costs may be higher idea • restrictions(making • Use recognized changes) brand name and • Go out of business trade marks • Could get a bad • Training and reputation support • May be difficult to • Easy financing sell your franchise