Watch Your Language: Legal Terminology for Business Entities
Nina Kaufman
9 Comments
Workshak's post on limited liability partnerships (which pulls from Taxgirl's post on ProBlogger) is right about one thing: that limited liability partnerships (LLPs) are pass-through entities.
What the post doesn't address is that the LLP statutes in many states make the form less-than-ideal for many multiple-owner businesses. For example, in some states, LLPs can be used only for businesses whose principals are licensed professionals (e.g., doctors, lawyers, architects). In other states, while the LLP will give you some shield against the negligence of your partner, your personal assets may be at risk when it comes to general contractual obligations (e.g., your lease) of the company.
As a result, if appropriate, a limited liability company (not partnership) may provide you and your co-owners with fuller protection against creditors' claims.
Another good reason to consult with an attorney and an accountant before making your choice, instead of running to the online formation bureaus in the middle of the night. Once you've made your choice, it's not so easy to switch.
View Printer Friendly Version
Email Article to Friend
Reader Comments (9)
Brian and Sarah McCoy offers home based business by selling or marketing xocai products.
Useful info, the companies away from the limelight are making all the money.
ViSalus top distributor Darren Rosenwinkel shows you how to earn your own ViSalus BMW and join the ViSalus Bimmer Club. Lose weight with TSS, and have more energy with Neuro.
Great post, for this excellent compilation of companies operating in this space.
Thanks for this excellent compilation of companies operating in this space.
Really useful list, thanks very much for spending the time to put it together.
Good reason to consult with an attorney and an accountant before making your choice, instead of running to the online formation bureaus in the middle of the night.
Interesting post! you mentioned adWords by google that made them make a lot of money.
Useful info, As a result, if appropriate, a limited liability company may provide you and your co-owners with fuller protection against creditors' claims.