What does it all mean?
 

I know that this isn't really technical, but I've never really found an answer. I figure one of you guys knows. The official name of the corporation is Dr. Ing h. c. F. Porsche AG. Obviously, I know the Dr. and the F. So, what do the rest of the letters stand for. Assuming it's all German, what's the closest translation. I've just been curious, and I am used to sounding silly for asking silly questions.

I think "AG" is the German equivalent of "Inc."

Aktiengesellschaft, abreviated AG. Means company owned by shareholders.


Similar to AB in Sweden. Hence, SAAB.

Roughly, SA= Swedish Aircraft manufacturing, AB= Company Inc.

My car was made when Porsche was still a Kommanditgesellschaft auf Aktien (KG)

I think Ing hc is an honoris causa engineering degree. This is usually a doctorate granted by a university that has waived the usual requirements because the recipient has distinguished himself in that field.

Dr. Ing h. c. F. Porsche AG = Doctor Engineer honoris causa Ferdinand Porsche Inc.

Correct. Some university, I forget which one, bestowed an honorary doctorate upon Ferdinand Porsche for his engineering accomplishments.

yes - the F does not stand for Ferd. or Ferry


KG is sorta like a LLC or limited shareholder type co.

Very cool. It just goes to show the wealth of knowledge on this board. I can sleep better at night, now. Thanks.

BTW, I just found that the university was the Vienna University of Technology.

No, KG is like an LP, an LLC is more like a GmbH. In fact, the old manual I read on forming LLCs in the 90s began by saying "The LLC is a triumph of comparative law in action" insofar as we didn't have them before we borrowed the idea from the Germans. Used to do an LP with an S corp GP before then, lots more work.

"Business organizations for $1000, Alex!" :)

Wikipedia cut and paste:

Porsche had advanced to Managing Director by 1916 and received the honorary doctorate degree, "Dr. techn h.c." from the Vienna University of Technology in 1917 (hence the "Dr. Ing h.c" in his name, meaning "Doktor Ingenieur Honoris Causa"). Porsche successfully continued to construct racing cars, winning 43 out of 53 races with his 1922 design. In 1923, Porsche left Austro-Daimler after differences ensued about the future direction of car development.

OK -- I'll take refuge in the "sorta" I added for such contingencies...

Well they are both "Sorta" pass through entities that allow profits or losses to be taxed NOT at the entity level but at the individual tax rates of the partners (or members, in the case of an LLC).

Why is that relevant? Well, limitation of number of shareholders for pass through entities for one thing-- eventually the Porsche business got so big that it outgrew the entity.

This is also why individual income tax rates are important to small businesses, most of which are pass through entities. Pretax earnings are NOT taxed at the corporate rate but are considered to be taxable income to the members (irrespective of whether cash is distributed). Any further on this topic and I'll land in PARF, bye!

Disclaimer: the above is NOT tax advice

Still don't know what "PARF" is:(

one more john - what about voting -- i thought the p family members got 'shares' and voted them...

if true, isn't more llc-like? disclaimer: i only took one bus. law class and only so i could veil pierce polluters....

Randy,

Porsche is now an SE: And the family members are on the supervisory board:

http://forums.pelicanparts.com/uploa...1224196363.jpg

sorry - i meant back when it was a kg...