Limited Liability Corporation And Partnership Essay

581 words - 2 pages

Limited Liability Corporation and PartnershipB. Nikki ElliottFIN/ 419 - Finance for Decision MakingThien NGOLimited Liability Corporation and PartnershipBusiness are being started every day in all parts of the world. The majority of the business started are done so in the form of sole proprietorship as well as general partnership. When businesses are started this way all it means is that the liability of the business falls directly on the owners involved. To be protected from this the owners have the limited liability corporation (LLC) and the limited liability partnerships (LLP). Discussed further will be the difference in both and how they are involved in business decisions.Limited Liability CorporationWhen forming a LLC the owner much file all of the proper paperwork and pay the required fees in whichever state the business will operate or whichever state the main office will be. A huge benefit a corporation has is the ability to raise capital which will benefit the company to making a larger profit. The only negative that comes with a corporation is that they are subject to government fees and regulations as well as they have to share all of the financial records of the company with the public.Using a LLC while a business grows will help the business owner to limit the amount of liability that the owner is responsible with. The great thing about an LLC is that it is a complete separate entity from the owner and allows the owner to only be held accountable for what they actually invest into the company. The LLC helps keep the owner out of the law's ways, from being sued, since the corporation is a separate entity it can be sued...

Find Another Essay On Limited Liability Corporation and Partnership

The legal position regarding the notion of separate legal entity and limited liability.

2250 words - 9 pages principle that a corporation is a separate legal entity.The Salomon principle has stood the test of time because it has meant that corporations do have practical utility. "As a separate legal entity subject to limited liability and defined by share transferability, perpetual existence, flexible financing methods, specialized management, majority rule and the other attributes or consequences of incorporation" (Simon Fisher, 1994), the corporation has

Types of Paartnership Essay

535 words - 2 pages and must report periodically.A limited liability partnership (LLP) id different from a general and limited partnership but more closer to a limited liability corp. because in the LLP all partners have limited liability! However, it combined the characteristics of both partnership and corporations. As in a corporation, all partners in an LLP have limited liability, from errors, omissions, negligence, incompetence, or malpractice committed by other

LLC or LLP Paper

816 words - 3 pages IntroductionEvery day, more businesses are opening up and with each business that opens, liability is a concern. This paper will discuss what a limited liability partnership is as well as a limited liability corporation. An explanation will be provided as to when a limited liability or limited liability corporation should be used.Limited Liability PartnershipFor a limited liability partnership, partners have a limited amount of liability. A

Limited Liability

714 words - 3 pages Limited Liability Corporation and Partnership Paper 5Limited Liability Corporation and Partnership PaperFIN 219Michele HussKeinesha PrediumSeptember 8, 2014Limited liability companies allow you to enjoy the liability protections of a corporation with many of the structural and tax advantages of a partnership (Feigenbaum, n.d.). Many states offer owners the choice between limited liability company and limited liability partnership. Both have

week one indiviual assignment

1070 words - 4 pages structure that provides the limited liability features of a corporation as well as the tax efficiencies and operational flexibility of a partnership. LLC "owners" are typically referred to as members and, depending on the state, can consist of a single individual (one owner), multiple individuals, corporations or other LLC's.Like shareholders in a corporation, the federal government does not tax LLC's as separate business entities. Rather, all profits

Types of Business Ownership Structures

611 words - 3 pages There are four basic types of legal business ownership structures. These are sole proprietorship, general partnership, limited liability company, and corporation. This paper will outline the characteristics of each and provide an example for reference. A sole proprietorship is formed when one person owns and operates a business on his or her own and is relatively easy to start. (Shah, 2011) A sole proprietor can create their business by

An Explanation of Different Business Types

1277 words - 5 pages company. Problem of continuity may arise if a partner goes to jail, dies, judged insane, or withdraws from a business. Managerial problems may arise if the roles are not spelled out in writing. The size limitation for credit and capital is limited “A corporation is a business form that allows an unlimited life while providing limited liability for stockholders” (Hodgetts & Kuratko, 2008). The state in which you want a corporation to be

Corporate Characteristics Proposal

2120 words - 8 pages have all that is needed to make a qualified and informed decision as to the new start-up business venture.Several different forms of business organizations that could be selected as the basis for the business: limited partnership (LP), limited liability partnership (LLP), corporation (Inc., Co., Corp.), and limited liability company (LLC, Ltd.).The limited partnership is a type of partnership. Unlike the general partnership, in the limited

The Mechanics of Partnerships

2077 words - 8 pages of partnerships are : limited partnerships and general partnerships In this instance , we are uncertain of the type of partnership. Though, by supposition, we should take it at as a general partnership. In looking at the information given in this situation it is obvious that the matter lies on the partnership associations to a third party in carrying out its business. In any form of business partnership, the associates have individual Liability

Legal Forms of Business

950 words - 4 pages create, therefore, have higher start-up cost than a sole proprietorship or partnership. This form of business has regulations and limits the owner’s participation in the business. Has more government regulations and double taxation. Legal setup is complicated. Some of the advantages are limited liability. The business is separate from the owners. It is easier to borrow money as a corporation then it is as a sole proprietor because you can

The Roles of Different Types of Ownerships

1924 words - 8 pages . -Liability: Both are limited liability. Personal assets, or shareholder assets are not generally not responsible for business debts or obligations. Both are separate from the owners and are considered separate entities. -Income Taxes: The way taxes are handled is one of the biggest differences between the two. A C-corporation is taxed separately, they file corporate tax returns, and pay corporate taxes. Possible double taxation if the income is

Similar Essays

Limited Liability Corporation And Limited Liability Partnership

1120 words - 4 pages Running head: LLC and LLP 1 LLC and LLP PAGE \* Arabic \* MERGEFORMAT 2 Limited Liability Corporation and Limited Liability Partnership PaperFIN/419: Finance for Decision MakersLimited Liability Corporation and Limited Liability Partnership PaperStarting a business requires many decisions, one of which is the form of business organization that will be established. Common legal forms of business organizations include sole proprietorships

Limited Liability Corporation And Limited Liability Partnership

1003 words - 4 pages , and it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes" (SBA.Gov).Limited Liability Company (LLC)A limited liability company, also called LLC, has the characteristics of both a corporation and a partnership. An LLC is a business entity

Limited Liability Corportations And Partnerships Essay

861 words - 3 pages less paperwork. Unlike a traditional corporation, the LLC does not have shareholders, shareholder decision meetings, or bylaws. A limited liability corporation, "…combines the tax advantages and management flexibility of a partnership with the liability of a corporation," (LLC.com, 2008). LLC's have other advantages, like limited liability, pass-through taxation, and management flexibility.The owner or owners of an LLC have limited liability

Hong Kong And Shanghai Banking Corporation Limited

3435 words - 14 pages to qualify for the positions. There are specific training modules such as diversity awareness, disability awareness and LEAP to orientate the new employees for adopting the new environment. The findings in compensation and benefits for HSBC employees comprise of employee assistance program and preferential rates on a range of HSBC products.IntroductionThe HSBC Group evolved from the Hong Kong and Shanghai Banking Corporation Limited, which was