The Limited Liability Partnership ( Llp )

Corporations have their pros and cons. The pros of a corporation include the liability of the corporation instead of individuals, corporate taxes rather than personal taxes, the everlasting nature of a corporation, and the capital corporations make on the stock market. The cons of a corporation include the costs of incorporating, dealing with shareholders, and double taxation.

• LIABILITY – Stockholders personal assets are not subject to claims of creditors. The corporation itself is responsible for its actions and liabilities. • INCOME TAXES – Shareholders in a corporation are subject to “double taxation” as in first the corporation is subject to corporate taxation, then money is paid out in dividends. Which then is taxed again as personal income tax. • LONGEVITY - The life of a corporation is limitless as

5. What advantages help explain why virtually all large companies are organized as C corporations?

A limited liability company protects each partner from personal liability for certain obligations of the company. An important difference from other partnerships is that each partner is liable for the debts and obligations of the partners. With limited liability Company, each state has its own laws governing partners for these vessels. Some states allow only certain professions, such as lawyers and accountants to form LLP. Some states only provide protection from liability for negligence claims, leaving personally responsible for other types of requests partner. For tax purposes, profits are divided equally between the partners and the partnership is not taxed separately.

CONVENIENCE/BURDEN - The major convenience of a C-corporation is how easily it can obtain additional funds through issuing additional stocks. C-Corp's are burdened by the double taxation of both the corporation itself and dividends paid to the shareholders.

Limited Partnership: This partnership consists of a blend of both general and limited partners. This kind of agreement/partnership lets the general partner manage the entire operation, but they are still fully liable for debts. The limited partner only invests his/her money, and can only lose what they invested.

Longevity and or Continuity- Most corporations are categorized in different tax entities, Corporations can last forever or they can be set to a limited duration period.

The parties of an LLC have particular rights like voting decisions which impact the Limited Liability Company. The members of an LLC openly manage the firm and are likely to receive revenue allocations, tax remunerations as well as losses which are different from their membership interest. Members also have duties of trust which are sometimes called fiduciary duties. Several Limited Liability Companies are managed by its owners, and some are operated by managers. Members have a duty of loyalty to the entity (Fitzpatrick, 2018). Under the duty of loyalty, members have the responsibility of putting the achievement and benefits of the company above their advantages. Members ought to act honestly when dealing with the company and avoid any conflicting interests between the company goals and personal goals. A member is supposed not to take secret advantage of the business opportunities or hoard secret profits from the commercial activities of the company (Fitzpatrick, 2018). Members also have a duty of care, and they are required to act in a decent manner as well as exercise reasonable care in performing their duties. For instance, if your Limited Liability Company wants to purchase a piece of land, one is obliged to act responsibly and

Some of the advantages that the S Corporation has is that they have protected assets. The protected assets where the shareholders are basically no responsible for the certain debts of the corporation. S corporations also have a very good privacy protection system. It is important to keeps certain things private in a business.

After reading the case of Alex, Bill, Carl, and Devon’s business, me being their accountant, a type of business I would suggest them will be a Liability Limited corporation. Based on their needs LLC would be a perfect form of business for them. As their company was sole proprietorship ran by their dad, LLC offers some advantages of a corporation, as well as some advantages of a sole proprietorship. “A limited liability company, commonly called an "LLC," is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.” (Nolo, 2014, n.a.) The characteristics of LLCs and a partnership company are somewhat similar as they both provide flexibility to the management and also the benefit of pass-through taxation. The Owners of an LLC are called members. As most states do not have any limit on ownership, members can be individuals, companies, other LLCs and foreign individuals. There is no limit on the number of members in LLC. Some LLC also have only one owner, which is called a single member, and it is allowed in most of the states. Most states do not restrict ownership, and so members may include individuals, corporations, other LLCs and foreign entities” (irs.gov, 2014)

Corporations are the biggest business organization forms in the United States. A Corporation is a “fictitious legal entity that is created according to statutory requirements”. Corporations generate more that 85 percent of the country’s gross business receipt and can range in size from one to hundreds of owners (478, Cheeseman). Shareholders are owners of their corporation and have a say in the business matters. There are three types of corporations. A domestic corporation is a corporation that is in the state in which it is incorporated. When a corporation is in another state or jurisdiction outside of where it was incorporated it is a foreign corporation. An alien corporation is when the corporation was incorporated in another country.

Limited liability partnership is when a business provides protection for the partners involved against negligence of partners in the business. Some of the advantages is that it provides the limited

A sole proprietor is one individual business that is not, like a corporation or limited liability company (LLCs). It does not have to be registered with the participating states in order to be existent; conferring to the Internal Revenue Service (IRS); in 2008, more than 22.6 million sole proprietors existed in the United States (Staff I., N.d.). A sole proprietorship type of business is the easiest to form, however, it is also the easiest to forget to register with the local government which is required, acquiring a business license, and paying income taxes (Staff, I. N.d.).

The limited Liability Companies, which are, in practical terms, run, as if they were a partnership, between the persons who are shareholders of same, might be regarded by the law, as "quasi partnership".

Corporate governance provides a way to make the essential human satisfied. It’s a way to searches for implementation, safety, and success. It’s a way to search for creative performance. It’s a way to search for competitive spirit. The structure of corporate governance combine together all the values contributed by different positions and create the value is greater than the summary of the value of different parts. Anyway, corporate governance creates a structure to combine the funds and wisdom and create many of opportunities for