Limited Liability Corporation and Limited Liability Partnership Paper

Limited Liability Corporation and Limited Liability Partnership Paper

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Limited Liability Corporation and Limited Liability Partnership Paper, John Strange, Limited Liability Corporation and Limited Liability Partnership Paper FINANCE FOR DECISION MAKING FIN/419 August 04, 2008 Introduction 1
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Limited Liability Corporation and Limited Liability Partnership Paper, John Strange, There are different forms of organization that a business can take. The choices that a firm’s founders make in regard to the formation of a business can have a significant effect on the operations of the business. Each form of organization has it’s strengths and weaknesses. The three basic types of organization are a sole proprietorship, a partnership, and a corporation. Within these basic groups there are also subgroups which combine features to make a new types of organizations. Two of these hybrids are the limited liability corporation and the limited liability partnership. These two subgroups have particular features which may work well for certain business endeavors. Limited Liability Corporation A limited liability corporation, or LLC, is an organizational form that can be utilized by a group of people that are starting a business. In this form of organization the stockholders are protected from personal liability so there is only the possibility of losing the investment that the individual made into the business. This facet of the structure is similar to that of a regular corporation. “LLCs are popular because, similar to a
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This note was uploaded on 08/17/2011 for the course BUS 200 taught by Professor Torres during the Spring '11 term at University of Phoenix.

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Limited Liability Corporation and Limited Liability Partnership Paper

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