TAPLNC

Analyzing and evaluating
Business vehicles in USA
GROUP 4
I. GENERAL OVERVIEW OF BUSINESS VEHICLES IN USA
1. Definition about
business type
Business Type means the legal form
of organization of a corporate parent
or recipient corporation, including,
but not limited to, a corporation,
partnership, sole proprietorship, or
limited liability company

2. Types of business
vehicles in USA
There are 4 main types of business
vehicles in USA, such as Sole
proprietorships, General
Partnership, Limited Liability
Company, Corporations.
II. ANALYZING BUSINESS VEHICLES IN USA
1. SOLE
PROPRIETORSHIPS
a. Definition
A sole proprietor is someone who owns
an unincorporated business by himself
or herself . As the business and the
owner are not legally separate. It is the
simplest form of business structure.

1. SOLE
PROPRIETORSHIPS
b. Aspects of sole proprietorships
Number of owner: the owner and the
company asset and liability is not separated .
Taxation: When you’re an employee, your employer

pays half of your Social Security and Medicare taxes
and withholds the other half from your pay. As a sole
proprietor, you’re responsible for paying the full
amount of your Social Security and Medicare taxes.
1. SOLE
PROPRIETORSHIPS
b. Aspects of sole proprietorships
Liability: There are no forms to file or fees to pay

when you start a sole proprietorship. However, you
will need to register a Doing Business As (DBA)
name or Fictitious Business Name (FBN)
depending on your state.
Formation: Sole proprietorships don’t require

any upfront paperwork. The designation is
automatic and kicks in as soon as you start doing
business.
2. GENERAL PARNERSHIP
a. Definition
A general partnership is an unincorporated business
with two or more owners who share business
responsibilities.
b. Aspects of general partnerships
Number of owner: A general partnership required at

lease 2 owners and usually know each other very
well.
Liability: In a general partnership, every partner

has unlimited liability for the obligations of the
business, including debts and taxes.
2. GENERAL PARNERSHIP
Taxation: a partnership must file an annual information

return to report the income, deductions, gains, losses,
etc., from its operations, but it does not pay income tax
Instead, it "passes through" profits or losses to its
partners.
Formation:
(1) Choose a Partnership Name
(2) Register a Fictitious Business Name
(3) Draft and Sign a Partnership Agreement
(4) Comply with Tax and Regulatory Requirements
(5) Obtain Insurance
3. LIMITED LIABILITY
COMPANY
a. Definition
Limited Liability Company (referred to as
an LLC): A LLC is a business structure in
the US that protects its owners from being
personally pursued for repayment or the
company’s debts or liabilities.
COMPANY
b. Aspects of LLC
Number of owner: owned by a single
individual, two or more individuals, or by a
corporation or another LLC.
Taxation: The IRS considers an LLC to be a “pass-

through entity,” rather than a separate entity. This
basically means that income from the business
passes through the business straight to the
members, who must then report profits and losses
on their individual income tax returns
COMPANY
Liability: LLC members are protected from
personal liability for business debts and
claims, a feature known as “limited liability.”
Formation: Specific Steps to forming an LLC

include:
1. Choose a business name
2. File Articles of Organizaion
3. Create a Limited Liability Company
Operating Agreement
4. Obtain Required Permits and Licenses
5. Declare the Business.
4. CORPORATIONS
a. Definition
A corporation is a legal entity that is separate and
independent from the people who own or run the
corporation, namely shareholders .
b. Types of corporations
C-Corporation
S-Corporation
B – Corporation
4. CORPORATIONS
c. Aspects of limited liability company
Number of owner: if operating as a C-Corps, there

can be an unlimited amount of owners. However, if
operating an S-Corps,, then there can only be a
maximum of 100 owners .
Taxation:
• C-Corp: are subject to “double taxation”
• S-Corp: avoid “double taxation”
4. CORPORATIONS
Formation: This is 9 steps to start a corporation
(1) Choose a name for your corporation.
(2) Appoint initial directors.
(3) File articles of incorporation
(4) Draft corporate bylaws
(5) Hold the first board of Directors’ meeting
(6) Issue Stock
(7) Draft a shareholders’ agreement
(8) get an employer identification number
(9) Get business permits. Licenses and DBAs

III. EVALUATING BUSINESS VEHICLES IN USA
SOLE PROPRIETORSHIP
GENERAL PARTNERSHIP
LIMITED LIABILITY COMPANY
CORPORATION
IV. RECOMMENDATION FOR SUITABLE BUSINESS TYPES
Suitable field of business for sole
proprietorship
Fit for small businesses such as, a local grocery store, a local clothes
store, an artist, freelance writer, IT consultant, freelance graphic
designer, etc.
Suitable field of business for general
partnership
For example, law firms, medical practices, and architectural firms often
organize themselves as general partnerships. Spouses and other members of
families who want to run a business together also set up general
partnerships.
Suitable field of business for limited liability company
Type of business should form as LLC: Pharmaceutical, Branded retail

products, Real estate.
Suitable field of business for corporation
Practice shows that large corporations in the US such as Apple Inc.,

Walmart Inc., and Microsoft Corporation are organized under the form of a
corporation and after assessing the advantages and disadvantages of this
form
THANK YOU FOR LISTENING!!

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Analyzing and evaluating

Business vehicles in USA

Business Type means the legal form

of organization of a corporate parent

or recipient corporation, including,

but not limited to, a corporation,

partnership, sole proprietorship, or

limited liability company

There are 4 main types of business

vehicles in USA, such as Sole

Partnership, Limited Liability

A sole proprietor is someone who owns

an unincorporated business by himself

or herself . As the business and the

owner are not legally separate. It is the

simplest form of business structure.

Number of owner: the owner and the

company asset and liability is not separated .

Taxation: When you’re an employee, your employer

Liability: There are no forms to file or fees to pay

Formation: Sole proprietorships don’t require

b. Aspects of general partnerships

Number of owner: A general partnership required at

Liability: In a general partnership, every partner

Taxation: a partnership must file an annual information

Taxation: The IRS considers an LLC to be a “pass-

Formation: Specific Steps to forming an LLC

Number of owner: if operating as a C-Corps, there

(1) Choose a name for your corporation.

(2) Appoint initial directors.

(3) File articles of incorporation

(4) Draft corporate bylaws

(5) Hold the first board of Directors’ meeting

(6) Issue Stock

(7) Draft a shareholders’ agreement

(8) get an employer identification number

(9) Get business permits. Licenses and DBAs

Type of business should form as LLC: Pharmaceutical, Branded retail

Practice shows that large corporations in the US such as Apple Inc.,

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