BUSA 310 Lecture 8 Outline of Last Lecture I Employment Discrimination II Labor Relations Outline of Current Lecture II Business Organization types of businesses III Stocks Current Lecture Business Organization Sole Proprietorship most basic form of company just one person in charge Limited Liability Company LLC limits your liability when it comes to lawsuits Also limits your liability for outsiders but not banks or other people loaning money Generally formed in the state you are in pay a fee and register it under a certain name Usually want to have a partnership Partnership just being in a company with another person dividing everything equally Professional Limited Liability Company PLLC for professionals who own a limited liability company Corporation Need to decide where to put your corporation based on taxes by the state Corporations are treated like an individual and when sued it could be upheld in either your personal place of business or where you re incorporated can be sued in both places Must do everything you are supposed to do like having stockholders meetings Biggest reason to incorporate is for tax reasons 1 S corporations just a smaller version of a normal corporations and is less formal Piercing the Corporate Veil allows people to go after who ever in the company they want to and can go after sue them for all their assets These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Always make sure you get the highest insurance possible for your company and that it covers the most that insurance can cover Stocks 1933 Act requires if you offer a security that you register the security with security and exchange commissions Prospectus gives a lot of information on what you are about to invest in Tells you what you will own what they intend to do what they have done in the past including business stratagies Also gives you a lot of disclaimers Must have for Public Offerings Private Offerings Buying stock into companies but less formal Insider Trading When you have information that an average person doesn t know and use this to sell buy and trade stock Will go to jail this is illegal Always make sure you know what you are buying Don t count on being informed inform yourself