Instructor: Anthony Patete
Why do people choose LLC
In the business world today, there are many competitions in the market with all the different small businesses and corporations that is hard to compete with especially when you just starting off. In the business market today there is the LLC, partnership and corporation options that people can choose to turn their organization in to. Most of the time, many people started the organization with partnership first with out even noticing because they are just starting off and have not come up with something big enough to turn it into a corporation.
“A partnership can be defined as an association of two or more competent persons to carry on a business as co-owners for profit. To help understand this definition, we will break it down and look at the individual clauses.”
To start off a business many people will find help in their world of connections to make their business become something. It is the most simple start people start with other then sole proprietorship. When someone wants to keep a business with in the family they will most stay a sole proprietorship and pass it on to the next generation that generation to the next. Then again if they want their business to grow bigger they will become a corporation or LLC.
“Like limited partnerships, the corporation did not exist at common law; it is a form of business organization that owes its existence to statutes in all states that provide guidelines for its creation and management. Unlike a partnership, the corporation is a legal entity in the eyes of the law—an artificial person that enjoys an existence apart from the individuals who own or manage it.”
For the people that wants to be a corporation they like that the company becomes a person that can hold the lability of debts or if something goes wrong the corporation can take some of the heat off