FIN 419 Week 1 Individual Assignment - Limited Liability Corporation and Partnership Paper

FIN 419 Week 1 Individual Assignment - Limited Liability Corporation and Partnership Paper

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Week 1 – Limited Liability Corporation and Partnership Paper
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Week 1 – Limited Liability Corporation and Partnership Paper Before starting a business there are numerous kinds of organizations to select from. There are several options to select a business form and among them are partnership and Limited Liability Corporation. When we talk about partnership it comprises of minimum two numbers of people and each partner has its own liability which is limited to him; and LLC is defined as corporation in which each member has confined liability but the firm can enjoy unlimited liability. In this report we are going to explain the in this, the responsibility of limited liability corporations and partnerships. Besides, it will be recognized in what conditions limited liability corporation or partnership is selected over the other Limited Liability Corporation The term limited liability corporation can be defined as it is same like a corporation in which the owner has limited liability for all the amount dues and dealings of the LLC. Whereas the other characteristics of LLCs are same like a partnership, which provides the relaxation to the management and offers the advantage of pass-through taxation” (Internal Revenue Service, 2010, para. 1). There are unlimited numbers of individual in LLC as compared to the corporation; on the other hand, they are limited as to the proportion of interest in other company as mentioned by Gitman in 2006. LLC do have some of the advantages as mentioned in About.com, “the members
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This note was uploaded on 02/26/2012 for the course FIN 419 taught by Professor Abdul during the Fall '11 term at University of Phoenix.

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FIN 419 Week 1 Individual Assignment - Limited Liability Corporation and Partnership Paper

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