Entertainment Law

1.  The owners of sole proprietorships and partnerships have unlimited personal liability for the debts and losses of their business. In contrast, the owners of a for-profit corporation have limited liability for the debts and losses of the corporation. What Is the difference between limited and unlimited liability, and why does this difference exist?

2.  Please answer the following questions regarding the structure of a for-profit corporation (also known as a C corporation):  Who are the owners of the corporation? Who runs the corporation on a day-to-day basis? What is the role of the Board of Directors?

3.  Please answer these questions regarding the structure of a not-for-profit (NFP) corporation:  Who are the owners of the corporation? Who runs the corporation on a day-to-day basis? What is the role of the Board of directors?

4.  What is the primary philosophical difference between for-profit corporations and not-for-profit corporations? What happens to the profits made by a not-for-profit corporation and how are those profits taxed?

5.  An LLC (Limited Liability Company) is a hybrid that combines elements of both a partnership and a for-profit corporation. If you were planning to start your own business, what would be the advantages of the structure of an LLC as compared to either a partnership or a corporation?

6.  An L3C is a low-profit, limited liability company. It is a hybrid that combines elements of both for-profit and not-for-profit organizations. In other words, it's a mission driven, for-profit company that strives to do good for society while, at the same time, returning a profit to its owners. L3CS are a relatively recent form of business organization which is recognized in approximately 10 states (of which Illinois is one). Do you think this new form of business organization should be adopted by all 50 states?  Why or why not?