The Big University football team, a member of the Southeastern Conference (SEC), brings in over $100 million a year in revenue, including TV rights, ticket sales, and bowl games. Seats to a game cost well over $100, and coaches are paid millions of dollars (more than anyone else at Big U, including the president). However, despite enormous revenues, universities and their football teams are considered not-for-profit organizations and pay no taxes on the $100+ million their football programs bring in. Should a university football program be allowed to exist as a not-for-profit organization?
Jai started a new sustainability-oriented business six years ago, making single-serve coffee pods out of recyclable paper, rather than plastic. The company, Jai’s Pod, is now experiencing rapid growth. Jai started the company as an LLC but has been considering making a decision to incorporate. What are some of the advantages of changing to a C corporation?
You are headed off to college. Some close family members decide it would be a good idea to buy a house in the college town and then rent it out to students, with you also living there and actively managing it. Assuming you and your family buy it, what form of business would you select?
Jackson owns and runs a small computer repair business, a sole proprietorship, out of his home, with one employee. He also goes to small businesses at their locations, mostly cleaning viruses and doing other small maintenance tasks and repairs. A family physician’s office calls him in for a repair. He sends his employee to do the repair. Unknown to him, his employee makes a copy of patients’ personal information and sells it on the dark web. Jackson ends up being sued, and the plaintiffs ask the court to allow them to access Jackson’s personal, nonbusiness bank account that also has his spouse’s funds in the account. Can the plaintiffs take that money?