Limited Liability Corporation and Limited Liability Partnership

Limited obligation Corporation and Limited Liability Partnership Paper

FIN/419: Finance for Decision Makers

Starting a care requires many decisions, virtuoso of which is the relieve oneself of business organization that will be established. Common healthy forms of business organizations include sole proprietorships, partnerships, and findels. Aside from the common forms of business a number of opposite organizational forms exist that result owners with expressage indebtedness; two of which are exceptional obligation fraternity and hold in financial obligation partnership. In this paper I will explain the roles of limited liability flowerpots and limited liability partnerships, and discuss under what circumstances I would choose one or else of the other if I were establishing my own business.

Limited Liability Corporation

A limited liability corporation (LLC) exhibits characteristics of corporations and partnerships. A limited liability corporation can be established with one owner. One of the similarities to a corporation is the limited liability corporation is a business entity that operates separate from its owners. A limited liability corporation is usually managed by the managing members. another(prenominal) similarity is limited liability corporation owners, which are called members, withal have limited liability and are not unresistant beyond their capital contri only whenions.



A limited liability corporation may choose to have a board of directors, but are not required to do so. A limited liability corporation is similar to a partnership in that it operates like a partnership, but with an operating agreement instead of a partnership agreement. A limited liability corporation can be taxed as a partnership and pass on taxes to the members, but may choose to be taxed as a corporation, if it is determined to be more advantageous. A limited liability corporation can own more than 80% of another corporation and does not has ownership restrictions, limited liability corporation members may be foreign nationals or other companies (Answers,

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