Limited Liability Corporation and Partnership

trammel Liability Corporation and Partnership
Fin/419
June 25, 2012
Thien Ngo

special(a) Liability Corporation and Partnership
Every business begins with an idea, dream, or passion. Before a business is launched off the ground in that location are various decisions that harbor to be made, one of which what guinea pig of business entity to form. Choosing the correct business shell of business type is the key to owning, operating, and establishing a successful business. The two types of businesses that will be examined within this paper are particular(a) financial obligation corporations (LLC) and express mail financial obligation accessoryship (LLP).
Limited Liability Corporation
A limited liability corporation is own by its fragments and protects the proprietors from personal liability of the business. With a limited liability corporation the tax bribe is filed with the Internal Revenue Service for informational purposes only and each owner is responsible for filing their own tax returns. These types of corporations are bare of the worry of double taxation as each member is responsible for paying his or her own taxes. Limited liability corporations have no limited to the number of members it may have including otherwise limited liability corporations.



This type of business alike comes with disadvantages, such as it is more expensive to establish than other entities. Another disadvantage of the LLC is if a member passes away or goes bankrupt the company is dissolved. Investopedia.com defines an LLC as a hybrid entity that combines the characteristics of a corporation and a partnership or sole proprietorship. magic spell the limited liability feature is similar to that of a corporation, the availableness of flow-through taxation to the members of a LLC is a feature of partnerships (Limited Liability Company-LLC, n.d.).


Limited Liability Partnership
A limited liability partnership is owned by two or more partners and each partner is only liable for a limited amount of liability. The partners in a limited...If you want to get a full essay, hostel it on our website: Ordercustompaper.com



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