BUS670 Week 1 Assignment

This protects the limited partners from the full liability that is shared by the general partners.   Income Taxes – The limited partner’s profits are considered personal income and taxed as such. All profits from the limited partnership are considered personal income and taxed at their personal tax rates.  Longevity / Continuity – The continuity of the business is not affected by the death or disassociation of a limited partner.  An advantage for a limited partner is that the limited partner’s investment takes priority in the general partnership dissolves due to a death or disassociation of one of the general partners.

Limited Liability Company (LLC) combines the tax advantages of a partnership with the limited liability aspects of a corporation. LLC’s are governed by the Uniform Limited Liability Company Act (ULLCA). All members of the LLC enjoy limited liability unless there is serious misconduct is committed by said member(s), or a member fails to follow through on an obligation. All this should be outlined in your preformation contract. You will have more flexibility with taxation and options on how to manage the company. It would be advisable to also have an Operating Agreement. This will dictate how management will be hired and fired, division of profits, how to transfer interest in the event a member chooses to opt out or dies. What steps to take in the event of dissociation of a partner, and if it causes the dissolution of the LLC. Most importantly how the members vote in the LLC. The weight of the members vote is in accordance with the member’s capital

A Limited Liability Company (LLC), as the name states, has the ability in keeping your liability limited as a professional owner. This is fundamental in protecting your personal assets by separating them from your business assets. In choosing to run a LLC company, we have agreed that a manager-managed business would be conducive to our field of industry. Although one person will have the authority in overseeing the daily tasks of running the business, all non-managing members will still have an input in all decisions in regards to the enterprise. Contract negotiations and employment are just a few of the joint duties of all members. Running an LLC has many advantages like flexibility, limited liability in business related debts, pass-through taxes, and reliability standing. However, with perks there are always some downfalls, such disadvantages consists of being subjected to self-employment tax or if a member departs the LLC ceases to exist, although an Operating Agreement can reverse this challenge. As you can see, running an LLC has more pros, out weighing the cons of such companies.

Limited liability partnership (LLP): In a LLP no general partners exist, only limited partners exist to create the business as a limited liability under this form of partnership. LLP’s are typically used for any professional type of business where all partners/owners (a minimum of two are required), have a voice in the taxation structure of the business.

LLCs provide some liability protection to their owners, who are generally not personally responsible for the business debts and liabilities of the LLC. Creditors cannot pursue the personal assets of the owners to pay

Without a written agreement, partners are not paid a salary; instead they share profits equally (unless otherwise stated in agreement).

The limited partnership agreement will set forth the transactions that managers and investors can approve. This document also states the how earnings and losses will be distributed among the partners. Limited partners have also the right of being informed by general managers about the business performance and the business financial status. If Susan or Monica wants to admit a new partner, the new candidate to operate the business can be included if Vic approves this, unless the agreement document states otherwise. Limited partnership is easy to set up, and to appeal investors as limited partners. This

A limited partnership allows its partners to restrict their liability to the partnership costs only to the ratio of their investment. The partnership has one general partner who takes full responsibility of the company’s costs, is the one who makes the critical decisions and control the business, in this case the limited partners do not participate in

for short. A LLC is a legal form of a company that provides limited liability to its owners in many areas. The main characteristic an LLC shares with a corporation is limited liability, and the main characteristic it shares with a partnership is the accessibility of pass-through income taxation. It is every so often more flexible than a corporation, and it is complementary for businesses with a single owner.

The limited liability partnership (LLP) is another type of partnership. LLP is “a partnership consisting of one or more general partners and one or more limited partners” (p. 554). “It was created to limit the personal liability of the partners of "losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision” (Nickels, McHugh, & McHugh, 2013, p. 119). This business form also “allows a partnership to continue as a pass-through entity for tax purposes” (Miller, 2014, p. 554). However, limited liability partnership is not recognized as a legal business structure in every state, unlike the general partnership, In addition, taxing authorities in some states recognize the

Liability exposure within multiple businesses, There are personal risk of exposure to liability this is considerably high; the sole proprietor assumes unlimited personal liability for the breach of contract lawsuit and, under this business entity, puts all personal assets at risk for the sake of the organization itself. Liability had to deal with certain responsibilities of one party or a group of an organization that deal with financial compensation. A sole proprietorship is a business or business owned and operated by one individual ((Mancuso, 2014).

Partnerships come in two categories, general and limited. With a general partnership, associates succeed the company and undertake accountability for the partnership's debts and other responsibilities. In a limited partnership, partners serve as only investors. The partners have no power over the company and they are not focused with the similar liabilities as general partners have. A general partnership would be easier to practice if two or more partners who strive to be vigorously convoluted in the company. One of the major advantages of a partnership is the tax treatment it entails. A partnership does not pay tax on its earnings but passes through any profits or losses to the individual partners. During tax season, the partnership has to file a tax return that accounts for its income and losses. Personal liability is a main distress if you use a general partnership to develop your

General partnership: Under a general partnership, the owners of the business share equally in the responsibilities of the business and are equally liable for the obligations of the organization. The profits may be divided equally on a 50-50 basis between the partners, or in accordance with the original agreement contracted when the business was set up (General partnership, 2012, Quick MBA). Depending on the state, the partners may be jointly liable for one another's debts, which means if one partner is liable for a financial obligation and cannot pay the debt; the other partner is liable for the debts of the partner (General partnership, 2012, Quick MBA). Other states merely have several liability, meaning that the partners are individually liable for their debts that they gain over the course of doing business, but not personally liable for the partner's debts (General partnership, 2012, Quick MBA).

Some advantages that Microsoft might have are that in general partnerships, each participant is personally responsible for the actions of the company. This includes debts, liabilities and the wrongful acts of other partners. One advantage of a limited liability partnership is the liability protection it affords. This type of partnership structure protects individual partners from personal liability for negligent acts of other partners or employees not under their direct control, states the SBA. In addition, smaller local partners are not personally responsible for company debts or other obligations. This is advantageous for

Limited liability company (LLC): I will like to focus on Limited liability company, this is a corporate design partnership in which all partners are not responsible for the debts and other obligations of the other partner’s and this is the reason we choose this business. Members of the company cannot be held personally liable for the company’s debts or liabilities. The business we chose is important to