LLC, Partnership, and Corporation

LLC, Partnership, and Corporation

Introduction

The types of business organizations are determined as a function of their liability, set up and tax structure. There are commonly three types named sole proprietorship, partnership, and corporation. These are the broad categories (Citizens Media, 2012). However, through then combination of these there are other types of business organizations that have evolved with time. Each of these organizations not only has distinct features by law but also have different requirements for its set up. The paper discusses these requirements and gives examples of a limited liability corporation as well as advantages and disadvantages of each.

Requirements

LLC

Partnership

Corporation

Requirement # 1

The name of the limited liability company should end with limited liability company or a shortcut thereof. There are different permitted ways of doing this such as "Ltd. Co.," "LLC," "L.L.C.," "LC" or "L.C." the use of the word limited, however, is non permissible. in addition, the use of any other word such as bank and loan etc (Citizens Media, 2012). will require prior approval from the state government.

The business name should be something new in that it should not be a copy of some other business. This name must be trademark for the given organization.

The name of the corporation that is being filed in a certain state should contain the word Corporation, or Company, or Incorporated. It can either have this in full or it can have an abbreviated version of the same. Any other word that signifies the purpose of the corporation and is to be included to the name of the corporation will require prior approval.

Requirement # 2

There is no age requirement when it comes to the manager.

It is preferred that the partners sign a legal written agreement that define the rights and responsibilities of each partner. However, this is ...