Question

assume you are starting a new business right after you graduate . Please select the type of business entity, for example, corporation, partnership, limited partnership, professional corporation, sole proprietorship or any other. Simple tell us why you chose that particular business, advantages and disadvantages in terms of management, control, taxation, liability and complexity of filing required documents. Fell free to be creative. Your response should be no more than a couple of paragraphs.

Answer 1

limited partnership

Because it is hybrid form of corporation and partnership whereby having combined advantages of both the form of entities.

Both of this firms have their own plus and minuses. There is a limited liability of the owners in a company as compared to partnership/propitership which are easy to form and operate but small businesses & professionals usualy opt for paartnerships as they are easy to from and operate

however as buinessess grew there is a need for a from of orgaanisation which was hybrid between the 2 forms of organisation . Moreover , the rapid growth of service sector created an environment and demand for new from of organisation . Thus the concept of limited liability partnership has evoloved which incorprates the benefits of both corporation as well as partnership.

Advantages

1. The liabilty of each partner is limited to its share as wriiten in the agreement filed at the time of creation of limited partnership

2. Its has low cost and easy to form

3.The partners are not liable for acts the acts of each other and can be held liable for thier own acts

4. As a jurdical person, an LLP can sue in its name and sued by others .

The partners are not liable to be sued for dues against the LLP

Disadvantages

1. The only disadavantage of froming an llp is that it cannot come out withs its IPO and raise money from public which a company from of organisation can do easily