QST LA 245 Lecture Notes - Lecture 18: Limited Liability Partnership, B Lab, S Corporation
Document Summary
Describes and entity through which business income passes to the entity owner or owners, without the entity paying income tax on it. Means that an owner of a business is personally liable for the business financial o(cid:271)ligatio(cid:374)s to the full e(cid:454)te(cid:374)t of the o(cid:449)(cid:374)er"s perso(cid:374)al assets. Means that an owner of a business is liable for business obligations only to the extent of the o(cid:449)(cid:374)er"s i(cid:374)(cid:448)est(cid:373)e(cid:374)t i(cid:374) the business. Both are liable and collectively liable for the full amount of business obligations. Allows one who pays more than his share of collective liability to recover excess payment from others collective liable for the same debt. Contract provisions that shift the economic consequences of liability to the other party to the contract. Chose to extend credit to the business: banks, vendors, suppliers, employees. Did not choose to extend credit to a business: tort victims, taxing authorities. Is an unincorporated business owned by a single person.
