Limited Liability Corporation and Partnership Paper

Limited financial obligation corporation and union musical theme Leg tot on the wholeyy thither argon three most green forms of handicraftes trammel li cogency corporations, fusions and mend proprietorship. Companies have different types of characteristics that grade them as iodin of the different types of business. Each type of business has advantages and disadvantages depending in the elect legitimate form. Owners should determine under what jural form they testament establish a business establish on characteristics, advantages and disadvantage. consort to Gitman about 25 part of businesses argon either limited liability corporations or alliances. confederations About 10 pct of all businesses be partnerships. (Gitman 2009) The main characteristic of a partnership dwell in at least devil partners working in concert for a profit. Usually partnerships are established with a contract, outmatch known as articles of partnership. In the articles of partnership ca n be found the terms of the corporation. other characteristic is that partners have unbounded liability. In addition partners are liable for all liabilities of the corporation. Partnerships strengths start with the ability of raising to a greater extent specie than sole corporations, also borrowing enhanced by to a greater extent(prenominal) owners.

In carapace of needing loans for projects or to increase capital there are more owners to find the resources needed. According to Gitman partnerships have more available point power and managerial skills and income included and taxed on partners personal tax return. The weak nesses of a partnership start with the innu! merable liability of the owners. The partners become liable to finish off all debts even other partner debts. Also the disembodied timber of the firm, in the event of the die of one partner the partnership gets dissolved. The partnership is harder to liquidate or transfer. The other type of sound business is limited liability corporations best known as legal entity. Limited Liability Corporations About 15 percent of all businesses are...If you want to get a full essay, affirm it on our website: OrderCustomPaper.com

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