Curriculum
Course: Virginia 8 hour DPOR Pre-License Course
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Curriculum

Virginia 8 hour DPOR Pre-License Course

Text lesson

📘 Lesson 1.1: Types of Business Ownership

Sole Proprietorship

  • Definition: A business owned by one person.

  • ✅ Simple to form

  • ✅ Income reported on personal tax return

  • ❌ No liability protection — personal assets are at risk

Partnership

  • Definition: A business owned by two or more people.

  • Types:

    • General Partnership (equal liability and control)

    • Limited Partnership (investor partners only liable for their investment)

  • ✅ Shared capital and workload

  • ❌ Shared liability and risk of disputes

Limited Liability Company (LLC)

  • Definition: Hybrid structure that combines liability protection with pass-through taxation.

  • ✅ Limited personal liability

  • ✅ Flexible taxation

  • ❌ Must register and pay fees to SCC annually

Corporation

  • C-Corp: Separate legal/tax entity; subject to double taxation

  • S-Corp: Pass-through taxation; must meet IRS requirements

  • ✅ Good for raising capital

  • ❌ Heavier regulation and paperwork