UNIT 1 BUSINESS LEGAL STRUCTURE
1.1 Getting started.
Now that you have decided to start your own business, you will have to determine what business structure or form of organization suits your needs. The structure of your business will depend on whether you want to run your business yourself or with a partner or associates. There are three basic types of business structures and a lot of hybrids to meet different entrepreneurial needs and ambitions.
Discuss the following points:
1. What do you think are the main considerations of a businessman or a group of businessmen when starting a firm?
Look through the following vocabulary notes which will help you understand the text and discuss the topic.
| sole proprietorship (Am. E.); sole trader (Br. E.) | , , |
| general partnership | , , , |
| limited liability partnership | |
| corporation | , , |
| S corporation | , S |
| IRS (Internal Revenue Service) | |
| Internal Revenue Code | |
| C corporation | , C |
| professional associations | |
| limited liability company (LLC) | / () |
| business trusts | ( ), , |
| professional corporations | |
| liability | , |
| limited liability | |
| unlimited liability | |
| continuity of existence | |
| transferability | , , , |
| formality | , |
| a tort | |
| tort risk | |
| contract risk | |
| (un)intentional | () |
| working injury | |
| product liability | , |
| vendors | ; , |
| customers | |
| tradeoff | |
| pass-through taxation | , , , , , , |
| to file a tax return | |
| personal tax return | |
| asset purchase agreement | |
| interest transfer | , , , |
| estate | , |
| to transfer | |
| tax-reporting | |
| tax-paying | |
| latitude | , , |
| best tax rates | |
| to be sued | |
| voting rights | |
| general partner | / |
| limited partner | - |
| a separate entity | / |
| right of first refusal | , |
| venture | |
| to incorporate | , |
| name check | |
| an incorporator | ; , |
| Articles of Incorporation (Am.E.); Memorandum of Association (Br. E.) | /; |
| registered office, syn. legal office () | , |
| registered agent | , , |
| business office | |
| to file | , |
| board of directors | |
| to sit on the Board | |
| level of leverage | |
| leverage (Am. E.); gearing (Br. E.) | ; |
| domestic corporation | |
| state statute | |
| members | |
| grantors | , |
| declaration of trust | , |
| unanimity | |
| a private limited company (LTD) (Br. E.) | |
| a public limited company (PLC) (Br. E.) | |
| a public corporation (Br. E.) | (.) |
Reading
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