Q: Monopolies vs Cartels, and Purpose of the different corporate structures. 1 –

Q: Monopolies vs Cartels, and Purpose of the different corporate structures.

1 – Why would I prefer monopolies or cartels? I don’t understand this question. While virtual monoplies do exist – usualy for a short time – a monopoly is almost impossible to sustain without state sponsorship directly or by regulatory action. A Cartel is by definition a criminal conspiracy against the itnerests of the population.

2 – The purpose of an llc, vs a sub-s, vs a c-corp is just (a) who pays taxes and (b) who is the final authority in the organization.
… An llc allows the centralization of responsibility independent of the scale of each investment, can distribute profits in a manner unrelated to ownership, and the tax burden to be distributed to individuals. *(if there is one)
… A sub-s is limited in number of shareholders, has a voting structure, distributes profits according to ownership percentage, and distributes tax burden to the individuals. (if there is any).
… A c-corp is virtually unlimited in number of sharelholdres, has a voting structure, pays taxes direction, and then distributes dividends – prodoucing double taxation.

LLC > S-Corp > C-Corp is a natural lifecycle.
Startups often prefer an LLC
Self funded businesses usually prefer and S-corp
Investors prefer a C-Corp (it’s a tax thing).

The purpose of corporations since their inception is to produce a shield between investors and the capital they place in the business. IE: the most they can lose is their investment. Though there is a requirement for directors and exec insurance in case they do something untoward – which given the complexity of the code isn’t hard.

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