Limited Liability Company ( Llc ) And Joint Venture

Limited company is an organisation in which allow you set up and run your business. Any profits which are made within a limited company stays within the company after it has paid corporation tax, which then allows the company to share its profits.

A limited liability company protects each partner from personal liability for certain obligations of the company. An important difference from other partnerships is that each partner is liable for the debts and obligations of the partners. With limited liability Company, each state has its own laws governing partners for these vessels. Some states allow only certain professions, such as lawyers and accountants to form LLP. Some states only provide protection from liability for negligence claims, leaving personally responsible for other types of requests partner. For tax purposes, profits are divided equally between the partners and the partnership is not taxed separately.

A limited liability company consists of a single owner, or sometimes more than one owner, and are not taxed as separate business entities. All profits and losses pass through the business to those who own the company. Owners must report profits and losses on their personal tax return filing as a corporation, partnership, or sole proprietorship. If the LLC is ran by a single owner, they file a 1040 Schedule C form as a sole proprietor. Partners file a 1065 form consisting of a partnership, and a form 1120 is filed if the LLC is filing as a corporation. The LLC must be registered such as the State Corporation Commission, Department of Commerce and Consumer Affairs, Department of Consumer and Regulatory Affairs, or the Division of Corporations and Commercial Code. The great thing about an LLC is that the owner has freedom in management. The owner is able to run the organization as they see fit not answering to anyone,

Limited Liability Company (LLC) combines the tax advantages of a partnership with the limited liability aspects of a corporation. LLC’s are governed by the Uniform Limited Liability Company Act (ULLCA). All members of the LLC enjoy limited liability unless there is serious misconduct is committed by said member(s), or a member fails to follow through on an obligation. All this should be outlined in your preformation contract. You will have more flexibility with taxation and options on how to manage the company. It would be advisable to also have an Operating Agreement. This will dictate how management will be hired and fired, division of profits, how to transfer interest in the event a member chooses to opt out or dies. What steps to take in the event of dissociation of a partner, and if it causes the dissolution of the LLC. Most importantly how the members vote in the LLC. The weight of the members vote is in accordance with the member’s capital

The last of the four types includes the limited liability company, also known as a LLC. An LLC is an unincorporated form of business that carries characteristics of all of the other three forms of business. An LLC can choose to be taxed as a partnership, the owners can manage the business, and the owners have limited liability for debts and obligations of the partnership. LLC’s are

Salta Company installs a manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the units of production method:

You are a valued colleague and friend of this threesome, and they have come to you seeking advice as to how to structure their new business. They have

Shania should first think about key business decisions asking questions such as: What kind of business do I want? Who is my ideal customer? How will I set up the legal structure of my business? What taxes do I need to pay? As an entrepreneur and potential new business owner I would advise her to first speak with a business lawyer. She seems to have quite the support from loved ones: one following in her Christian faith, while the other is a non-believer in the Christian faith.

A Limited Liability Company (LLC), as the name states, has the ability in keeping your liability limited as a professional owner. This is fundamental in protecting your personal assets by separating them from your business assets. In choosing to run a LLC company, we have agreed that a manager-managed business would be conducive to our field of industry. Although one person will have the authority in overseeing the daily tasks of running the business, all non-managing members will still have an input in all decisions in regards to the enterprise. Contract negotiations and employment are just a few of the joint duties of all members. Running an LLC has many advantages like flexibility, limited liability in business related debts, pass-through taxes, and reliability standing. However, with perks there are always some downfalls, such disadvantages consists of being subjected to self-employment tax or if a member departs the LLC ceases to exist, although an Operating Agreement can reverse this challenge. As you can see, running an LLC has more pros, out weighing the cons of such companies.

A limited liability company is a citizen of every state of which their members are citizens.

Jennifer and I had some similarities and differences in our discussion post. We both recommended sole proprietorship for Shania’s business. Sole proprietorship is an unincorporated business owned and ran by one individual with no distinction between the business and the owner (U.S. Small Business Administration, (n.d.). We both agree that since Shania’s husband, Marvin has no interest in contributing to the business, her being the sole business owner would be most appropriate for her business goals. One point Jennifer made about the business was that once it takes off, Shania needs to expand location, products, etc., she could also form a partnership when that opportunity arises. Jennifer makes a valid point because Shania does not always

This leaves sole proprietorship and partnership business models because they fit into Shania 's strategic needs. Partnerships require drawing an agreement between entities on roles, responsibilities, and revenue sharing rations even in times of losses. Every partner is required to have some form of legal liability relative to the business functions in accordance with state laws. On the other hand, sole proprietorship requires registration and its registered owner is liable, at the same time, enjoys all profits from the business. Both business forms are easy to register even though their management, working, and regulatory procedures differ (Blais, 2011).

Every business that is created requires specific roles, with specific people, that have specific strengths and passions. In the case of Shania’s business, she has several friends and family that have voiced a willingness and interest in playing a part of seeing that business come to fruition. First, there is Shania’s husband, Marvin, who has said that he is willing to contribute financially to the business, however he has no intention of operating or managing the business. In the State of Colorado, community property does not apply, however there does exists the concept of marital property (Martin, 2010). I would advise Shania that any property transferred between her as an individual and the LLC might be considered marital

of the joint venture would benefit both companies if the terms of the agreement were favorable for both parties. It is also noted in the case that Sakari had

1. How would you advise Ms. Thorne concerning growing her organization, being financially viable and achieving her mission?