BLS 112 Lecture Notes - Lecture 3: Limited Liability Partnership, Sole Proprietorship, Limited Liability
16 May 2016
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Chapter 37 introduction to forms of business and formation of. Right to make all management decisions of business. 2 reason why sole proprietorship: the sole proprietorship is easy to form and inexpensieve, few people consider tehe business form decision. Partners have right to make all the management decisions for the business: all profits shared equally, partners aassume personal liability and liable for torts committed i the course of business by their partners or partnership employees. Requires no formalities and may be formed by default. Each partner"s right to manage the business and the deductibility of partnership losses on individual tax returns are attractive features. Llp partner has no liability for most llp obligations. Taxed like a partnership or like a corporation: pays federal income tax on its income but the partners pay federal incoe tax only on the compensation paid and the partnership profits distributed to the partners. One or more general partners and one or more limited partners.
