LLC v - management of the enterprise. (Morgan, Shedd,...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
The big difference between a partnership and a Limited liability Company is that partnerships are not shielded from the company debts like the LLC are. This is because a partnership is not a taxable entity under IRS rules. Income and losses of a partnership flow directly from the partners itself. A LLC does file a tax return under the IRS rules. LLC are recognized as a distinct entity from its owners for most purposes. The LLC provides a cleaner mechanism to assure limited liability to those who are inactive in the business along with those who are active in the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: management of the enterprise. (Morgan, Shedd, & Corley, 2010) LLC are easier to form and operate than corporations. Where corporations cannot, the LLC provides a mechanism for losses to flow directly to the owners, which can be a beneficial tax situation for owners. In a corporation all losses rest with the corporation and are not passed through to the owners. (Morgan, Shedd, & Corley, 2010) Bibliography Morgan, J. F., Shedd, P. J., & Corley, R. N. (2010). Bisiness Law 3rd Edition. Redding CA.: BVT Publishing....
View Full Document

This note was uploaded on 08/30/2011 for the course BUSINESS 101 taught by Professor Wase during the Spring '11 term at Grantham.

Ask a homework question - tutors are online