[Series 65] 37, Business Entity Types as Clients
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.
In this episode you will learn:
- The fiduciary considerations for a sole proprietorship center on the single owner's suitability due to unlimited personal liability.
- For general partnerships, suitability must be determined for all partners because they all share unlimited liability.
- LLCs and S-corporations offer limited liability, and investment recommendations must consider all members or shareholders.
- C-corporations are separate legal and taxable entities; therefore, suitability is based on the corporation itself, not the shareholders.
- A key distinction for the Series 65 exam is understanding the pass-through taxation of sole proprietorships, partnerships, LLCs, and S-corps versus the double taxation of C-corps.
For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep