BUSINESS MODELS LEGAL STRUCTURES OWNERSHIP MODELS AND TAX
BUSINESS MODELS LEGAL STRUCTURES, OWNERSHIP MODELS, AND TAX IMPLICATIONS Professor Donna Litman and Steven Kass, Director Sharon and Mitchell W. Berger Entrepreneur Law Clinic © 2018
TOPICS Types of Business Ownership, Entities, & Liability Choosing the “Best” Entity Choosing the “Best” Tax Structure Other Legal Issues Q&A
BASIC TYPES OF BUSINESS OWNERSHIP &ENTITIES Sole Proprietorship General Partnership with Limited Liability Corporation Limited Liability Company (LLC) Professional Service Corporation or LLC
LIABILITY – BUSINESS VS. PERSONAL Personal Liability of Business Owners Sole Proprietorship General Partnership Limited Liability of Business Owners Corporation Limited Liability Company Partnership with Limited Liability for Professional Services
CHOOSING THE “BEST” ENTITY FOR YOUR BUSINESS Background Considerations Short & Long Term Goals Founders, Funding, & Financing Location of Business Activities State Law for Forming & Operating Entity
CHOOSING THE “BEST” ENTITY FOR YOUR BUSINESS Legal Considerations Ownership, Management, & Control Partnership: Partners Corporation: Directors, Officers, Shareholders LLC: Managers or Members (or Both) Costs & Formalities to Form & Operate Income Tax & Other Considerations
CHOOSING THE “BEST” TAX STRUCTURE FOR YOUR BUSINESS Federal Income Tax for Entities (General Rules & Elections) Separate Taxpayer Corporation – C Corp “Pass-thru” Entity Partnership Multiple Member LLC Corporation – S Corp Disregarded Entity Single Member LLC
OTHER LEGAL ISSUES Intellectual Property (“IP”) Issues Identify, Protect, Do Not Infringe Personnel Issues Employees or Independent Contractors “Onboarding” Personnel Policies & Manuals Other Important Issues Licensing, Privacy, & Securities Regulation
Q&A What else would you like to discuss? _______________________ For questions later, please contact: Donna Litman litmand@nova. edu (954) 262 -6154 Steven Kass skass@nova. edu (954) 262 -6142
- Slides: 9