LLC and partnership
Jessica Phan
Prof. M. Leath
English 1301.115
March 22, 2014
Essay 2
Limited Liability Company (LLC) and Partnership “To succeed in business, to reach the top, an individual must know all it is possible to know about that business” (Getty). The first time starting a business is exciting and also a challenge. A person should learn everything about their customers, the market and their competitors. Besides, the most important thing for a businessman to succeed is understand about what business one will do and what kind of business one will open. Especially, a business has several co-owners. There are many forms of business nowadays, but the two the most common form of business are Limited Liability Company (LLC) and Partnership. So, what is the difference between the formation, ownership, liability, structure and the life span of the LLC and Partnership?
First of all, Partnership is a business where two or more people share the ownership and responsibility. When they decide to go into business together, Partnership does not require to file documents with the state when they start business, and “Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.” (IRS). Usually, partnership business are offered for the small business. And The LLC is another type of business that can be explain as
A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. An LLC is not a corporation; it is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions.” (Wikipedia).
That means LLC have to file documents with the states, pay fees to file articles of organization and have some protection from its limited liabilities. Partnership is always formed by two or more members, and LLC can be formed by a single or more members. According to some states, LLC can consist of foreign
Prof. M. Leath
English 1301.115
March 22, 2014
Essay 2
Limited Liability Company (LLC) and Partnership “To succeed in business, to reach the top, an individual must know all it is possible to know about that business” (Getty). The first time starting a business is exciting and also a challenge. A person should learn everything about their customers, the market and their competitors. Besides, the most important thing for a businessman to succeed is understand about what business one will do and what kind of business one will open. Especially, a business has several co-owners. There are many forms of business nowadays, but the two the most common form of business are Limited Liability Company (LLC) and Partnership. So, what is the difference between the formation, ownership, liability, structure and the life span of the LLC and Partnership?
First of all, Partnership is a business where two or more people share the ownership and responsibility. When they decide to go into business together, Partnership does not require to file documents with the state when they start business, and “Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.” (IRS). Usually, partnership business are offered for the small business. And The LLC is another type of business that can be explain as
A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. An LLC is not a corporation; it is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions.” (Wikipedia).
That means LLC have to file documents with the states, pay fees to file articles of organization and have some protection from its limited liabilities. Partnership is always formed by two or more members, and LLC can be formed by a single or more members. According to some states, LLC can consist of foreign