Types Of Business Entities

Question 1

Limited Liability Partnership (LLP)

Answer 1

partnership where no general partner is required

all partners are partially shielded from liability

Partner are NOT liable actions of its members

Question 2

corporation

Answer 2

Is considered a legal person

Question 3

Limited Liability Company LLC

Answer 3

participants are called “members”
shields members from personal liability

LLCs protect owners for personal business debt liability (like a corporation).

they can be held liable if another member does something illegal.

Question 4

General Partnership

Answer 4

all partners must be active participants

general partner bears full personal liability for the business; limited partner is shielded from personal liability.

consists of at least one general and one limited partner

Question 5

Sole Proprietorship

Answer 5

owner bears full personal liability for business

only one person is involved

Question 6

Limited Partnership

Answer 6

general partner bears full personal liability for the business; limited parter is shielded from personal liability

Question 7

Corporation Sole

Answer 7

church entity can not register as a brokerage

Question 8

Joint Ventures

Answer 8

can not register as a brokerage but can still come together for a real estate transaction.

investors plan to part ways after the stated venture is finished