Explain roles of limited liability corporations and partnerships. If you were establishing your own business, under what circumstances would you choose one instead of the other?

Fin/419 fin 419 fin419 week 1 – individual assignment – limited

Limited Liability Corporations (LLCs) and Partnerships are two of the most common types of business entities. An LLC is a type of corporation that provides personal liability protection for its owners, which means that if the business experiences losses or is sued, then the members’ personal assets will not be at risk. On the other hand, partnerships are businesses with two or more owners who share in management and profits/losses but do not have limited liability protections; as such, any debts incurred by the company must be paid back personally by each individual partner.

When deciding between forming an LLC or partnership, there are several key factors to consider. For example, LLCs offer more flexibility when it comes to taxation whereas partnerships require all partners to file taxes separately. Additionally, LLCs have less stringent requirements for setting up than partnerships which typically require additional paperwork such as Articles of Organization or Partnership Agreements. Ultimately though, what type of entity you choose will depend on your specific needs and goals – so it’s best to consult a qualified legal professional before making a decision either way.