Business Organization Types

Question 1

What is a Sole Proprietorship?

Answer 1

No legal or financial separation from its owner
FINCEN does not require gathering of beneficial ownership since there is only one person
Example: barber, landscaper, plumber, photographer

Question 2

With businesses being created under different entity types, what areas does it impact?

Answer 2

1) management
2) tax
3) liability
4) Distributions
5) Beneficial ownership

Question 3

What website do you use to find a registered business?

Answer 3

Secretary of State

Question 4

If the SOS registration says “foreign” does that mean it is international?

Answer 4

No, it just means it is registered in a different state

Question 5

What are the two key documents for businesses?

Answer 5

Articles of Incorporation/Organization ( legally document the creation of the business) & Fictitious Name Filing (DBA- operating as something other than their legal name)

Question 6

Form 990 is filed by whom?

Answer 6

Non-profits

Question 7

Common INCOMING Business transactions?

Answer 7

Credits from payment processor
P2P Deposits
Transfers between accounts

Question 8

Common OUTGOING Business transactions?

Answer 8

Operating Expenses ( rent, utilities)
Payroll
Cash withdrawals
Payments and transfers