Llc and Partnership Comparison

Limited obligation Corporation and federation Comparison Several choices atomic number 18 available when deciding which type of occupancy organization to hire when starting a business; sole proprietorship, partnerships ( exceptional partnership and throttle liability partnership), or grasss (S Corporation and limited liability corporation). A sole proprietorship is one person who is completey unresistant for the business; a partnership is at least both people and each person has limited liability; and a corporation that each person has limited liability tho the corporation has full liability (Gitman, 2005). Only two of the types of business organizations ar explained in this paper, Limited Liability Corporations (LLC) and a Partnership and an explanation why and LLC or Partnership would be breach when choosing to start a puppy training business. Limited Liability Corporation A limited liability corporation is defined as A business structure with corporation and partnership qualities. A LLC provides protection from personal liabilities like a corporation and the taxation advantages of a partnership (Small Business Information, para. 1). Those choosing an LLC be not limited to the number of other corporations they may take part, but they are limited to the percentage of interest in the other corporation (Gitman, 2005).

The About.com (n.d.) website states two of the advantages of an LLC are Members pilenot be held personally liable for debts unless they move over signed a personal guarantee (Small Business Information, para. 3) and members are taxed individually on that pointby avoiding double taxation; however there are instances that the LLC is taxed as a corporation. The disadvantages of an LLC, as stated by About.com (n.d.), is that an individual may be double taxed, the amount of paperwork can be less than a corporation but more(prenominal) than a sole proprietorship, and an LLC is dissolved when a member dies or undergoes bankruptcy (Small Business Information, para. 1).... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .