- In this business and legal community, there is a lot of emphasis on corporations and LLCs. It's as if they're the only two entities that exist. Sometimes people'll ask, "Aren't there "other entities and organizations to choose from?" And of course, there are. For purposes of this course, I focus on the corporation and LLC, because the vast majority of business organizations in the U.S. are covered under these two headings. But there're other types of entities. One is the traditional partnership, which doesn't need to be registered formally at all.
But partnerships have all of the problems of liability. Not only are the partners liable for the business, but they can be liable for each other's conduct as well. There are also limited partnerships, a type of partnership with passive shareholders who will have limited liability, and one or more general partners, who take the personal liability for the organization. There's a hybrid called the "limited liability, limited partnership" that functions in a similar way. There are also limited liability partnerships.
You've probably seen "LLP". These are generally reserved to regulated professions, like lawyers and accountants. There are also public benefit corporations, nonprofit corporations, and co-ops. We think of the public benefit of nonprofits, as churches, and schools, and nonprofit organizations that do fundraising to help the poor, and co-ops that generally function to serve a purpose for homeowner associations and condo complexes. And there are other unincorporated things, like associations, and general partnerships.
I mention these to help you understand that there are many options when it comes to incorporation. But if you want more than the standard corporation, or LLC, you should probably do a lot more research, and also work with an attorney.
DISCLAIMER: This course is taught by an attorney and addresses US law concepts that may not apply in all countries. Neither LInkedIn nor the attorney teaching the course represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate basic information to help viewers understand the basics of intellectual property.
- Determine the purpose of a fictitious business name (FBN).
- Distinguish between types of entities.
- Identify required components for setting up a corporate entity.
- Recognize elements in bylaws.
- Interpret the purpose of federal tax identification.