Alternative Business forms

Question 1

SH Agreement to Eliminate Formalities

Answer 1

Non public Corp - eliminate board and operate like a partnership

Agreement is in articles and approved by ALL SHs

No PTCV

Valid 10 years

S Corp Tax treatment - no more than 100 owners of stock in USA, only one class or stock

Question 2

Business Trust

Answer 2

File articles of trust with SCC

Owners may exercise control without risk of PTCV

Question 3

LLCs

Answer 3

Statutory with limited liability

Dissolves upon agreement by all members

Maj vote or members or managers allows for transfer of interest in LLC

Question 4

Benefit Corp

Answer 4

For profit entity that also takes environment into account

Articles state it is a B Corp

Must file annual benefit report

Same liability of C corp except also a fiduciary to environment and the public