The Absolute Beginner's Guide to Corporate Structures

All the basics on creating a business entity in the United States.

Transcript

1. The Absolute Beginner’s Guide to Corporate Structures @pasanpr Pasan Premaratne
3. I’m not a lawyer
4. This is not legal advice
5. Business Structure •Details on structure •Forming the structure •Advantages & Disadvantages •When does it apply to you? @pasanpr Overview
6. •Sole Proprietorship •Corporation •Sub Chapter S Corporation •LLC @pasanpr Business Entities •Not covering Partnerships
7. Why Delaware? •Well Established Laws •Judges •Precedence •Costs Less @pasanpr Delaware
8. @pasanpr Sole Proprietorship •Owned by one person •You could already be one •Doing Business As name
9. If you want to operate under a different name, you can file a DBA
10. @pasanpr Sole Proprietorship •Owned by one person •You could already be one •Doing Business As
11. @pasanpr Sole Proprietorship Advantages Sole Owner Easy taxes Disadvantages No liability protection Can’t raise funding
12. When should you file as a sole proprietorship?
13. Rarely
14. @pasanpr Corporations •Independent legal entities •Owned by their shareholders •Unlimited lives
16. @pasanpr Corporations •What is a registered agent? •Who can be a registered agent? •How do I find a registered agent?
18. @pasanpr Corporations Stock •Authorized Shares •Par Value •Issued Shares
19. @pasanpr Corporations Advantages Limited Liability Tax Treatment Raising funding Employee incentives Disadvantages Costs Double Taxation Additional Paperwork
20. When is a corporation good for you?
21. @pasanpr S-Corp •What is an S-Corp? •Formation •IRS stipulations
22. @pasanpr S-Corp Advantages Tax Savings Disadvantages Raising Capital Shareholder Compensation
23. When should you go for an S- Corp?
24. @pasanpr LLC - Limited Liability Company •What is an LLC? •Hybrid company •Limited liability •Pass through federal tax treatment
26. @pasanpr Operating Agreement LLC Operating Agreement •Ownership Interests •Governing Principles •Financial Obligations •Allocation of Profits
27. @pasanpr LLC Taxes •Single member LLC •Multiple member LLC •Filing as a corporation •Combination of an LLC and S-Corp
28. @pasanpr LLC Advantages Limited Liability Operational Ease Profit Sharing Disadvantages Self Employment Taxes Limited Life
29. When should you go for an LLC?
30. @pasanpr Selecting A Corporate Structure •How many owners will there be? •How will the earnings be distributed? •Will the business generate profits or losses early on? •Will the business raise funding?
31. Questions? @pasanpr