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Business Associations/Corporations
University of Mississippi School of Law
Bradley, John R.

Corporations
Bradley
Spring 2006
 
Introduction
1)      Business Forms
a)      (Sole) Proprietorship
i)        Business Debts: Yes
ii)       Tort Liability for Acts of Others: Yes
iii)     Tort Liability for Own Acts and Those Supervised: Yes
iv)     Organizational Formalities to Gain Status on Liability:  No
v)      Taxation: Individual (1 level)
b)      General Partnership
i)        Business Debts: Yes
ii)       Tort Liability for Acts of Others: Yes
iii)     Tort Liability for Own Acts and Those Supervised: Yes
iv)     Organizational Formalities to Gain Status on Liability: No
v)      Taxation: Conduit (1 level)
c)      Limited Partnership
i)        General Partner:
(1)   Business Debts: Yes
(2)   Tort Liability for Acts of Others: Yes
(3)   Tort Liability for Own Acts and Those Supervised: Yes
(4)   Organizational Formalities to Gain Status on Liability: Yes
(a)    Certificate of Limited Partnership
(5)   Taxation: Conduit (1 level) 
ii)       Limited Partner
(1)   Business Debts: No
(2)   Tort Liability for Acts of Others: No
(3)   Tort Liability for Own Acts and Those Supervised: Yes
(4)   Organizational Formalities to Gain Status on Liability: Yes
(a)    Certificate of Limited Partnership
(5)   Taxation: (1 level)
d)      Limited Liability Par

n Status on Liability: Yes
(1)   Simple Certificate of Registration
v)      Taxation: Conduit (1 level) 
e)      Professional Limited Liability Company (PLLC)
i)        Business Debts: No
ii)       Tort Liability for Others: No
iii)     Tort Liability for Own Acts and Those Supervised: Yes
iv)     Organizational Formalities to Gain Status on Liability: Yes
(1)   Certificate of Formation
v)      Taxation: Conduit (1 level) 
f)       Limited Liability Companies (LLCs)
i)        Business Debts: No
ii)       Tort Liability for Acts of Others: No
iii)     Tort Liability for Own Acts and Those Supervised: Yes
iv)     Organizational Formalities to Gain Status on Liability: Yes
(1)   Certificate of Formation
v)      Taxation: Conduit (1 level)
g)      Professional Corporation
i)        Business Debts: No
ii)       Tort Liability for Others: No
iii)     Tort Liability for Owns Act and Those Supervised: Yes
iv)     Organizational Formalities to Gain Status on Liability: Yes
(1)   Articles of Incorporation
v)      Taxation: Corporate (Sub S election gives conduit treatment if