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Business structure

REG Chapter 9 · Area II · Blueprint II.E

Mina started Coastal Pottery alone, took on a partner, then thought about an LLC and a corporation. Each step changed who was liable for the business's debts, who could make decisions, what the owners owed each other, and how the business would end. The Blueprint asks you to summarize how each entity is formed, run and ended, its legal characteristics, and the rights, duties and authority of owners and managers, and to apply them to a scenario. The tax side of these entities comes later, in chapters 13 and 19 to 22.

In this chapter

1. Choosing a business entity
2. General partnerships: formation and operation
3. Partners leaving: dissociation, dissolution and winding up
4. Limited partnerships, LLPs and LLLPs
5. Limited liability companies
6. Corporations: formation and shareholders
7. Corporations: directors, officers and fundamental changes

This chapter has 7 lessons, 50 practice MCQs with explanations and 20 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Forming, running and ending each entity type
• legal characteristics
• rights, duties and authority of owners and managers

Chapter 8: Federal laws and regulations of business · Chapter 10: Basis of assets