Article Marketing | Article | Directories | Contents | LLC Partnership vs LLC Corporation

LLC Partnership vs LLC Corporation

Posted on February 20, 2010
Filed Under Business, Law, Self Help | Leave a Comment

Risks are inherent in every business. As they say ‘no pain no gain’. You cannot operate a business without some risks. The best practice is to minimize those business risks. Your small business’s legal structure is an important way to minimize some of the personal risks you run by operating a business. Sole proprietorship or partnerships are easy to form and operate. However, they pose a serious risk to the business owner’s personal assets. A sole proprietor or a partner is personally liable to all business obligations and debts. A minor error or omission has the potential to wipe out all that you have earned through a life time.

You can minimize this personal liability risk by forming a limited liability company or a corporation. LLC and Corporations are a separate legal entity from it business owners and the business debts or obligations do not cross over. Forming an LLC or Corporation requires compliance with statutory formalities. State statutes govern incorporation and organizations of business. A valid and available name has to be chosen for the business to do business as, articles of organization or incorporation has to be filed with the state by paying the due filing fees. There are slight variations in the processes and formalities required to incorporate or organize the business in different states.

LLC’s can be formed with a single member as a sole proprietor or with two or more members like a partnership. An operating agreement is imperative in the smooth functioning of a multi member LLC as it will give clarity to the each member’s rights and responsibilities. Some states stipulate creation of an operating agreement for forming a LLC partnership as mandatory. The use of corporate seal stamps have been abrogated by all the states. It is no more a legal necessity to imprint corporate seals on official or legal documents of a corporation or LLC.

Share This Article

Related Posts

  1. Entrepreneurs Guide to LLC Partnerships
  2. Boostability Basics
  3. Hire a Westlake Village Personal Injury Lawyer for your Legal Issues
  4. An Elder Law Attorney Denton Seniors Can Hire For Help
  5. You Guide To Unsecured Loans …

Comments

Leave a Reply




-->