Video Transcript:

>> So there are multiple different options an aspiring center director has when opening a center. The most basic form of organization would be a sole proprietorship in which you, the director, are the single taxpayer, and any income or losses generated by the organization would be reported on your personal tax return. The next more complicated but still fairly straightforward organization would be a partnership in which any gains or losses would be allocated to the partners in that organization, and then at the probably most complicated level are corporations, and there are various types of corporations. There are what's known as S corporations in which any income or losses generated would be, again, reported on the partners' individual income statements, or I'm sorry, individual tax return. Then there's a C corporation at which taxes are paid at the organization level. So the individual shareholders would not report individual tax from that, and then there's limited liability corporations, LLC's, which are kind of a hybrid of the C corp and the S corp in the sense that they are a tax past their entity, meaning that income or losses are paid by the shareholders, but they have the protection afforded by being a corporation.

Which one of the business structures does Mr. Anderegg say is the most complicated to set up initially? Why is this business structure complicated?

How would you describe the types of corporations to a teacher?