Business structures and governance
Area 2: Business Law (15-25%)
Your Progress
0 of 60 questions attempted
Topics
- Sole proprietorships and general partnerships
- LLCs and limited partnerships
- Corporate formation and governance
Lessons
Study Frameworks
Business Entity Taxation
Entity Types
C Corporation
Taxed at entity level (21% flat)
Double taxation on dividends
Unlimited shareholders
S Corporation
Pass-through (K-1)
≤100 shareholders
One class of stock
Shareholder basis: stock + debt to shareholder
Partnership
Pass-through (K-1)
Flexible allocations
Basis: capital + share of all liabilities
No entity-level tax
Sole Proprietorship
Schedule C
Self-employment tax
No separate entity