BUSN 323 Lecture Notes - Lecture 13: Limited Liability Partnership, Limited Liability Company, Sole Proprietorship
Document Summary
Chapter 21: forms of business organization: corporation, s corporation, limited liability company. Major forms of business organization: sole proprietorship, general partnership, limited partnership, limited liability partnership. Limited liability partnership (llp: partnership in which all partners assume liability for any partner"s professional malpractice to the extent of the partnership"s assets. If one of the llp partner is guilty of malpractice, other partners" personal assets cannot be seized: business name must include phrase limited liability partnership or abbreviation. Llp : parties must file form with secretary of state to create llp, each partner pays taxes on his/her share of business income. S corporation: business organization formed under federal tax law that is considered corporation, yet taxed like a partnership. Incorporated under state law and then granted s corporation status by the irs so that income can be passed through to shareholders: no more than 100 shareholders, shareholders must report income on their personal income tax forms.
