Limited Liability Corportations and Partnerships

Starting a new patronage requires many decisions, and much planning. unitary of the earliest and most important decisions is the form of the business, or the caseful of business entity. Common forms of business entities include mend proprietorships, trammel liability corporations (LLC?s), limited liability partnerships (LLP?s), public and privately held corporations, and franchises. This cover explains the roles of limited liability partnerships and corporations, and the reasons for choosing one over the different in progressing a new business.

Limited Liability CorporationsA limited liability corporation is a type of business entity in which the business itself is separate from its owners. practically, the limited liability corporation is a sole proprietorship, becoming an LLC offers the owners protection from personal liability while allowing the network and losses of the business to pass straight to the owners without the LLC being taxed separately. ? there poop be an unlimited number of members in an LLC high society. The company can be managed directly by its members or the members can designate a manager,? (Duermyer, 2008, p. 1). Additionally, the LLC designates a registered agent, who is responsible for receiving legal documents for the LLC. Often the registered agent is the business owner or manager, if the designee is in the equal state as the established LLC, (Duermyer, 2008).

LLC?s are easier and cheaper to establish than full corporations, and do not require annual meetings of members. LLC?s protect their owners in a similar fashion as corporations, but require 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...

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