BUSINESS ENTITIES PAPER
DAVID FELDHEIM, JD
DECEMBER 23, 2013
The sports bar and restaurant venture that Lou and Jose plan to embark upon with Miriam as a silent partner; where patrons can socialize while eating, drinking and watching sporting events on large screen televisions. The business entity that best serves this effort would be a Limited Liability Company (LLC). A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. An LLC is not a corporation; it is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions. LLC’s do not need to be organized for profit. Certain types of businesses that provide professional services requiring a state professional license, such as legal or medical services, may not form an LLC but use a very similar form called a Professional Limited Liability Company (PLLC). A Limited Liability Company (LLC) is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation, and it is well-suited for companies with a single owner. With Lou and Jose being a LLC they are essentially...
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