What are the characteristics of limited liability company? What protection does it offer the partners of...

What are the characteristics of limited liability company? What protection does it offer the partners of the company which a general partnership doesn’t?

Expert Solution

characteristics of limited liability company are as follows:

1. separate legal entity : the limited liability company has separate legal identity, which is compeletely separate from its owners.

2. limited liability: In LLC the liability of members is limited to their actions. they are not responsible for actions of other members.

3. Flexibility in taxation: the wide range of flexibility is available in case of tax treatment. It is possible to file either as a C-corportion or as a S-corporation.

4. easy formation and operation: the procedure of formation of LLC is simple and easy. As no requirement of holding annual meetings, its operations are easy too.

5. owners are called members: in LLC, the owners are referred to as the members of LLC

in general partnership, the liability of partners or members is unlimited whereas, in Limited liability corporation, the liability of members is limited to their actions. the members of LLC have the benefit of protection from personal liability.

ekkarill92 answered 3 months ago

what are the characteristics of a limited liability company?

What are the advantages and disadvantages of partnerships. Why might partners form a limited liability company...

What are the advantages and disadvantages of partnerships. Why might partners form a limited liability company or a corporation? Discuss corporations you may be familiar with personally or from the news that have ousted their Chief Executive Officer.

what is limited liability? why does the goverment grant limited liability to the owners of corporations?...

what is limited liability? why does the goverment grant limited liability to the owners of corporations? Why is limited liability more important for firms trying to raise funds from a large mumber of investors than for firms trying to raise funds from a small number of investors?

general partners have limited personal liability for business debts in a limited partnership. True or false...

general partners have limited personal liability for business debts in a limited partnership. True or false And can you explain.

Question 1 What does it mean for shareholder in a particular company to have limited liability?...

Question 1 What does it mean for shareholder in a particular company to have limited liability? An investor’s required rate of return on preference shares is 12%. If the dividend received annually is GH¢4.75, what is the price of the preference share? Question 2 A preference share sells for GH¢25 and pays dividend of GH¢2.50. What is the share’s required rate of return? You are a common stockholder of MD company limited. You are paid dividend of GH¢6.00 every year...

Explain how an S-Corporation and a limited liability company and a limited liability company can be...

Explain how an S-Corporation and a limited liability company and a limited liability company can be formed? What are their restrictions and characteristics?

BLG is a limited liability Company

taxed as a partnership and has four shareholders each owning 25% of the outstanding Interests (Shares). The shareholders’ outside basis in their respective Interests is $1.00On February 20, 2018, POM LLCBLG is a limited liability Company, a single member limited liability company, sold its 25% in BLG Interests to ODY LLC, a limited liability company taxed as a Partnership, for $700,000 payable $100,000 cash at closing and a Promissory Note in the amount of $600,000 bearing interest at 5% with...

The major characteristics of a corporation are as follows: • Separate legal existence • Limited liability...

The major characteristics of a corporation are as follows: • Separate legal existence • Limited liability of shareholders • Transferable ownerships rights • Ability to acquire capital • Continuous life • Government regulations • Corporate income tax The following items pertain to one of the characteristics of the corporate form of organization. For each item below, identify: (a) whether it represents an advantage or disadvantage, and (b) the characteristic that pertains to the item. (Note: a characteristic can be used...

1. Under a partnership, the partners have ________ for partnership debts. A. limited liability B. unlimited...

1. Under a partnership, the partners have ________ for partnership debts. A. limited liability B. unlimited liability C. no liability D. limited personal liability

What is 'limited liability?' Group of answer choices Limited liability refers to the directors' ability to...

What is 'limited liability?' Group of answer choices Limited liability refers to the directors' ability to limit their liability for acts of negligence, fraud etc. Limited liability refers to the ability of a company to limit its liability. Limited liability refers to how much the directors have to contribute in the event of the company becoming insolvent. Limited liability refers to the ability of a member to limit his liability. Question In the leading case of Salomon v Salomon &...

Question