Ibjectages And Disadvantages Of Being A Limited Liability Company
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Advantages of partnerships:
More capital can be raised because more people (partners) are investing in the business. Roles and responsibilities are divided between the partners, which makes it not one-man job. Risks and loses are shared between the partners. There is no obligation to make the financial records publicly available unless the partnership has LLP status (Limited Liability Partnership).
Disadvantages of partnerships:
Partners are jointly liable to all the businesses’ losses and debts unless they have LLP status. The decision-making process will be slow, because all partners have to consent. Partnerships need a solicitor to take care of the legal agreements and issues, which is associated with legal costs.
Disadvantages of being a limited liability company:
A limited liability company has to publish annual financial statements. The financial statements have to meet the accounting standards. The accounts of a large limited company have to be audited to ensure they comply with the legal requirements.
Trusts are unincorporated and have no legal entity. They are formed to hold assets on behalf of an individual or an organization and control how to be used. (Gov.uk, 2016)
An example is a trust issued in behalf of a deceased individual for the children of the deceased.
These are organization mainly formed to provide services or goods to the general public or to its members. However, they can make profit but it is not the primary goal.
Non-profit organizations can be one of the following:
a) Charities: exist to provide help to the needy
b) Public sector organizations: exist to serve the