Limited Liability Corporation & Partnership
Finance for Decision Making
FIN 419
University of Phoenix

In this paper the important roles of a Limited Liability Corporation (LLC), Limited Partnership (LP), and the Limited Liability Partnership (LLP) will be explained. This includes the advantages and the disadvantages of both while starting up a new business. Many decisions go into starting a business and determining the form of entity the business will take is an important decision to establish. Different factors contribute the decision but every aspect needs to analyze.
Limited Liability Corporation: LLC According to Gitman (2009), Permitted in most states, the LLC gives its owners, like those of S corps, limited liability and taxation as a partnership. But unlike an S corp, the LLC can own more than 80% of another corporation, and corporations, partnerships, or non-U.S. residents can own LLC shares. LLCs work well for corporate joint ventures or projects developed through a subsidiary (p. 8). Both shareholders and stockholders can split its profits and tax benefits in any percentage. Each member files their own tax return separately and the LLC files for informational purposes. In an LLC the advantages of a partnership and corporation structures are combined. In addition a limited liability company the owners of a LLC have the liability protection of a corporation. This means that business creditors of an LLC may not pursue the personal assets of LLC members in an attempt to recover business debts. Like a corporation an LLC exists as a separate entity. Members of an LLC cannot be held personally liable for debts unless they have signed a personal guarantee. A disadvantage of LLC’s is that they are more expensive to create than some of the other entities.
Limited Liability Partnership
According to Gitman (2009), A partnership permitted in many