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Week 1 Business Law Assignment

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Week 1 Business Law Assignment
Difference between S corporation and Partnership

The difference between a partnership and an S corporation concerns the issue of liability protection. Other differences between a partnership and an S corporation include formation requirements as well as ongoing formalities. A partnership may end or dissolve upon death or withdrawal of a partner. S corporations may continue to operate forever, long after the original owners of the company have withdrawn or past away.
Name
Partnerships that choose to operate under a different business name from that of the partners ' names must file a "doing business as" (DBA), or "fictitious" business name, as explained on the Citizen Media Law Project website. S corporations rarely file a fictitious formation documents. Many states require S corporations to include a corporate identifier business name. Rather, S corporations list the name of the business in the company 's in the business name such as "incorporation," "corporation," or the correct abbreviation. The business name of a partnership may not contain a corporate identifier.
Liability
Members of a partnership have unlimited liability for debts and obligations that arise in the business. Business creditors of a partnership may pursue the personal assets of a partner in an effort to recover business debts. Shareholders of an S corporation have limited liability for company debts and obligations. The personal assets of an S corporation shareholder may not be pursued by business creditors in reference to business debts and obligations of the company Formation Difference between a partnership and an S corporation concerns the issue of formation. S corporations are required to file articles of incorporation with the state where the S corporation operates. Furthermore, S corporations must pay the applicable filing fee charged by the state. Filing fees vary from state to state. Business owners are not required to file paperwork with the



References: LegalZoom.com: Incorporation DifferenceBetween.net: The Difference Between a Corporation and a Partnership The Difference Between a Partnership & an S Corporation | eHow.com http://www.ehow.com/about_6468163_difference-between-partnership- corporation.html#ixzz1y2I1CtVa San Diego Business Law Firm: Difference Between LLC and LLP

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