Corporations, general partnerships, limited partnerships, limited liability partnerships, and limited liability companies are different types of business entities that offer varying levels of liability protection for owners and different rules around management, taxation, and formation requirements. For example, shareholders in a corporation are generally not personally liable for corporate obligations, while general partners in a partnership are personally liable for all partnership obligations.
Corporations, general partnerships, limited partnerships, limited liability partnerships, and limited liability companies are different types of business entities that offer varying levels of liability protection for owners and different rules around management, taxation, and formation requirements. For example, shareholders in a corporation are generally not personally liable for corporate obligations, while general partners in a partnership are personally liable for all partnership obligations.
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Corporations, general partnerships, limited partnerships, limited liability partnerships, and limited liability companies are different types of business entities that offer varying levels of liability protection for owners and different rules around management, taxation, and formation requirements. For example, shareholders in a corporation are generally not personally liable for corporate obligations, while general partners in a partnership are personally liable for all partnership obligations.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online from Scribd
Partnership Company Liability of Shareholders Partners General Partners Members not Owners generally not personally partners generally personally personally liable for personally liable for own liable for LLC’s liable for obligations of liable for all acts but not obligations corporate the partnership; partnership acts of others; obligations RUPA requires obligations; under some exhaustion of limited partners statutes may be partnerships generally are liable for assets first. not. partnership k’s too. Management Generally Partners Generally Partners Members may managed by manage. managed by manage manage or officers who are general appoint controlled by partner(s); managers directors; limited partners shareholders may have generally have certain voting no rights management rights. Taxation Firm-taxation May choose May choose May choose May choose firm-taxation or firm-taxation or firm-taxation or firm-taxation or pass-through pass-through pass-through pass-through taxation. ` taxation taxation taxation Formation Must file articles Can be formed Must file Must file articles Must file articles Requirements of incorporation by oral or certificate of of limited of organization with state. written limited liability with state agreement of partnership with partnership with through state state conduct Transferabilit Shareholders Partners cannot Partners— Partners Members y of generally free transfer their whether general generally generally can Ownership to transfer their full ownership or limited— cannot transfer freely transfer ownership interest without cannot transfer their full their financial interests at will. unanimous their full ownership rights but consent. ownership without cannot transfer interest without unanimous their unanimous consent management consent rights without unanimous consent