East West Bancorp, Inc. · NASDAQ:EWBC
East West Bancorp — Investor Presentation (June 2016)
19 slides from East West Bancorp's investor presentation, June 2016
Slide 1: Organizational Types and Considerations for a Small Business
Organizational Types and Considerations FOR A SMALL BUSINESS
Slide 2: Welcome
Welcome 1. Agenda 2. Ground Rules 3. Introductions ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 3: Objectives
Objectives Identify general characteristics, advantages, and disadvantages of each of these organizational types for small businesses: • Sole Proprietorship • Partnerships • Limited Liability Company (LLC) • C-corporation • S-corporation ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 4: What Do You Know?
What Do You Know? What do you know or want to learn about organizational types for small businesses? ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 5: Organizational Types
Organizational Types What are the 5 common organizational types (also called “legal structures”)? • Sole Proprietorship • Partnership (general, limited, & LLP) • Limited Liability Company (LLC) • C-corporation • S-corporation Continued … ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 6: Factors for Choosing an Organizational Type
Factors for Choosing an Organizational Type • Taxation – Taxes on profits are paid through personal tax returns except for corporations • Liability and Risk – Responsibility for harm to another person or property, or contract disputes • Management – Decision-making authority • Continuity and Transfe
Slide 7: Discussion Point #1: Organizational Factors
Discussion Point #1: Organizational Factors Which organizational factors have the most impact on your business? ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 8: Sole Proprietorship
Sole Proprietorship Business is one and the same as the owner Advantages and Disadvantages • Owner has unlimited personal liability • Pass-through taxes – personal tax return • Owner controls business • Simplest form of organization • Lowest cost to form • Appropriate for small start-up ORGANIZATION
Slide 9: General Partnership
General Partnership Business association of two or more people Advantages and Disadvantages • Owners have personal liability • Pass-through taxation • Shared risk and costs • Simple to form, low cost Create a partnership agreement ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 10: Limited Partnerships and Limited Liability Partnerships
Limited Partnerships and Limited Liability Partnerships Advantages and Disadvantages • General and limited partners – general partner runs business • Pass-through taxation • Requires a partnership agreement • Liability will depend on the type of partner (general or limited) ORGANIZATIONAL TYPES and
Slide 11: Limited Liability Company (LLC)
Limited Liability Company (LLC) Unincorporated hybrid entity, with traits of corporation & gen. partnership (or sole prop.) Advantages and Disadvantages • Greater flexibility than sole proprietorship and partnership in distributing profits (less restrictive than S-corporation) • Limited liability –
Slide 12: Corporation
Corporation Legal entity, created under the laws of a state, which has its own privileges and liabilities distinct from those of its members Types: • C-corporation • S-corporation Most businesses DO NOT need to incorporate ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 13: C-Corporation
C-Corporation Also called “regular corporation” (most common for larger companies) Advantages and Disadvantages C • Limited liability • Company is taxed (double taxation an issue) • Complex to form • Complex ownership and management • Appropriate for a few specific reasons – otherwise, choose anothe
Slide 14: S-Corporation
S-Corporation Owner has limited liability of a corporate shareholder but pays income tax like a sole proprietor or partner S Advantages and Disadvantages • Same as C-corporation except for pass-through taxation ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 15: Choosing an Organizational Type
Choosing an Organizational Type How do I decide which structure is best for my business? • Establish business plan, think about business • Initial guidelines: Owner-operator? Partnership? Multiple owners? Product with significant liability? Large venture with multiple owners and complex financing? •
Slide 16: Discussion Point #2: Your Organizational Type
Discussion Point #2: Your Organizational Type Which organizational type will be right for you and your new business? ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 17: Five Key Points to Remember
Five Key Points to Remember • The organization type impacts how you own and run your business • Match your legal structure to business needs i.e., Tax, Liability, Management, Continuity and Expense • Most common small business type: Sole Proprietorship is same as the owner • A Partnership includes p
Slide 18: Summary
Summary • What final questions do you have? • What have you learned? • How would you evaluate the training? ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
Slide 19: Conclusion
Conclusion You learned about: • Five organizational types (legal structures) • Their characteristics, advantages, and disadvantages • Choosing an organizational type ORGANIZATIONAL TYPES and CONSIDERATIONS ‹#›
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