Limited Liability Company
Limited Liability Company and Partnership
Jasamine L. Stephens
Finance for Decision Making FIN/419
October 10, 2011
Maria Johnson
Limited Liability Company and Partnership
Every business venture begins with a dream and a basic idea. Beginning a business is a decision that must be made by first deciding what type of entity to establish. There are several factors that need to be decided such as will the new business have one or multiple owners. The most common forms of a business entity are sole proprietorship, partnership, corporation, S corporation, limited liability company (LLC), and limited liability partnership (LLP). When creating a business with one owner the most logical form would be a limited liability company. …show more content…
A limited liability company is best when all members want to take an active part in managing the business, unlike corporate shareholders who require a board to manage the company. The members of a limited liability partnership are called partners unlike those of the limited liability company.
If opening my own business I would establish my company as a limited liability corporation. To start my business I would want to be the sole owner. To start and run a business is extremely difficult and more new businesses fail than survive. Because of these odds I feel it would be best to establish my company as a limited liability company as I am limiting my personal liability to my start up organization. With a limited liability company I have the opportunity to choose the organizational makeup to manage my company.
As far as taxes on the profits of the limited liability company or limited liability partnership both do not require the business to pay income taxes on its profits. The IRS requires that the profits or losses associated with the company be associated tax liability to the owners of the entity. This in my opinion is the safer way to begin a new business, independently, and with little to no adverse affect to the members personal
Jasamine L. Stephens
Finance for Decision Making FIN/419
October 10, 2011
Maria Johnson
Limited Liability Company and Partnership
Every business venture begins with a dream and a basic idea. Beginning a business is a decision that must be made by first deciding what type of entity to establish. There are several factors that need to be decided such as will the new business have one or multiple owners. The most common forms of a business entity are sole proprietorship, partnership, corporation, S corporation, limited liability company (LLC), and limited liability partnership (LLP). When creating a business with one owner the most logical form would be a limited liability company. …show more content…
A limited liability company is best when all members want to take an active part in managing the business, unlike corporate shareholders who require a board to manage the company. The members of a limited liability partnership are called partners unlike those of the limited liability company.
If opening my own business I would establish my company as a limited liability corporation. To start my business I would want to be the sole owner. To start and run a business is extremely difficult and more new businesses fail than survive. Because of these odds I feel it would be best to establish my company as a limited liability company as I am limiting my personal liability to my start up organization. With a limited liability company I have the opportunity to choose the organizational makeup to manage my company.
As far as taxes on the profits of the limited liability company or limited liability partnership both do not require the business to pay income taxes on its profits. The IRS requires that the profits or losses associated with the company be associated tax liability to the owners of the entity. This in my opinion is the safer way to begin a new business, independently, and with little to no adverse affect to the members personal