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An S Corporation—or S corp for short—is a special type of corporation that allows business owners to enjoy the legal protections of a corporation while avoiding the dreaded “double taxation” that typically comes with one.

A corporation is a legal business entity that’s separate from its owners. It can own property, enter into contracts, sue or be sued, and even pay its own taxes—basically, it’s treated like its own “person” in the eyes of the law. Corporations are created when a group of individuals (or even just one person) files the proper paperwork with their state government, typically called “articles of incorporation.”

A partnership is like a business marriage—two or more people agree to join forces, pool resources, and share in both the profits and responsibilities of running a business. Unlike a corporation, a partnership is not a separate legal entity, which means the partners are personally liable for the business’s debts and obligations (unless it’s set up as a limited partnership).

A Sole Proprietorship is an unincorporated business owned and run by one individual, with no legal distinction between the owner and the business. It’s easy to set up. In most cases, you don’t even have to file anything with your state (though you may need licenses or permits depending on your work). All income flows directly to your personal tax return using Schedule C on your Form 1040.

Due diligence is all about doing your homework before making a financial decision. Think of it as a deep dive into the details.

Angel Investors provide early-stage capital to entrepreneurs in exchange for ownership equity or convertible debt.

Price-to-Earnings Ratio (P/E) is calculated by dividing the current market price per share by the earnings per share (EPS).

Depreciation is the gradual reduction in the value of an asset over time. It reflects the wear and tear of an asset as it ages and is used.

Cash reserves are essentially a stash of money set aside for unforeseen business scenarios.

A Business Plan outlines what your business is, what it aims to achieve, and how it plans to get there.

Entrepreneurship is the art of turning an idea into a business, steering through uncertainties and challenges with an eye on growth.

An IPO is when a privately held company decides to go public by offering its shares to the general public for the first time.

Capital refers to the assets that individuals or businesses use to create wealth. It is the fuel that powers the engine of economic growth.

Equity represents your share or interest in an asset after all debts associated with that asset are paid off.

Venture Capital is a type of financing that investors provide to startups and small businesses that show potential for long-term growth.

Private equity is a form of investment where funds are directly invested into private companies, or public companies are taken private.

Market Capitalization is the total value of a company's shares of stock; it's an indicator of a company's size, and investors watch it.

A stock represents ownership in a company. When you buy a stock, you're essentially buying a tiny piece of that company, known as a 'share'.

Passive income is money you earn without actively working for it.

Cash flow is a dynamic force that, when harnessed through strategic investments, can propel you toward financial freedom.