FIN 305 Lecture Notes - Lecture 5: Limited Liability Company, Limited Liability Partnership, Sole Proprietorship
Document Summary
Main forms of business organization: sole proprietorship, partnership, corporation. Not only can people come after your business, but your personal assets as well. An association of two or more persons coming together as co-owners for the purpose of operating a business for profit. A partnership in which all partners are fully responsible for the liabilities incurred by the partnership. If one person screws up, the other is also responsible for the mistake. A partnership in which one or more of the partnership in which one or more of the partners has limited liability. Test question:***every partnership has to at least have a general partner, but they can"t have entirely limited partners. *an llp does not have general partners, all owners of an llp have limited liability for business debts. Income taxes are paid once as personal income. Must be dissolved or reorganized if a partner leaves or dies.
