Limited liability Essays

  • Advantages Of Limited Liability Partnership

    1636 Words  | 7 Pages

    Advantage of LLPs. The major advantages of Limited Liability Partnership are listed below: a) Limited Liability: Unlike a general partnership, an llp is a separate legal entity from its partners. Thus the partners are not held liable for the liabilities of the llp. Any debts or liabilities against the company shall not be required to be paid at the cost of partner 's assets. Whereas in general partnership the partners share the profit as well as the losses of the partnership b) Flexibility: LLP enjoy

  • GRUENDL V. OEWEL Citizenship Inc: Case Study

    679 Words  | 3 Pages

    They also determine the court made a mistake as difficulty of the law by definition; the plaintiff is independently liable for the judgment against OPL, a limited liability partnership preceding an alter-ego viewpoint. Therefore, the judgment should be reversed, and return to the courts for issuance of a statement of verdict and a new judgment should be made. They did not reached the dispute of whether significant

  • Separate Legal Personality

    1628 Words  | 7 Pages

    the contents of the case, the separate legal personality can be understood as the word held by Lord Halsbury at the House of Lords “once the company is legally incorporated it must be treated like any other independent person with its rights and liabilities appropriate to itself” or in a simpler way as “to take the profits without running the risk of debts and expenses” idea which was stated by Vaughan William J. at the High Court. Salomon’s case also let the opportunity to everyone to organise their

  • BUL 2241: Module 1: Personal Financial Liability Company

    625 Words  | 3 Pages

    Because there was more than one owner, a sole proprietorship was not appropriate. A general partnership would lead to individual member liability: Since the deli failed, this would have subjected the partners to significant personal liability. A limited liability company, closely held corporation, or S corporation would both protect owners from personal financial liability. As the deli failed, this would be a benefit. An S corp would offer additional tax benefits, such as allowing investors to deduct

  • Liability Risks In A Small Business

    983 Words  | 4 Pages

    Liability is the kind of risk face in a small business because Liability is a major concern for sole proprietors; the reason is that the owner is liable personally for claims against the business. Unlike an LLC or corporation, if by any chance I find myself in a lawsuit as a sole proprietor, losses a lawsuit or otherwise find myself in debt, it’s not only the business that will be liable for the debt, but the owner which is the sole proprietor will be as well. And being a sole proprietor, one of

  • Business Case: Solomon V Solomon And Co. Ltd.

    2193 Words  | 9 Pages

    association. This implies that it is body of bodies; in fact, a fake individual composes of regular persons. For the purpose of much legislation it considered as a legal person. An organization is separate legal personality. Under the idea of limited liability the owners of the organization under ordinary circumstances, are not answerable or in charge of the commitments of the organization in this manner owners shareholders liable just for the amount of their unpaid shares and not the commitments of

  • Alexia Tech Corporation Case Study

    844 Words  | 4 Pages

    from the net profit amount to calculate the cash from (used for) operating activities. Conversely, it adds the amount of decrease in assets to the net profit to arrive at the cash from (used for) operating activities. The amount of increase in liabilities (such as accounts payable) are added while decreases are subtracted from the net profit to calculate the cash from (used for) operating activities. c) The cash paid for the business combination is shown in the investing activities section on the

  • Painted Images Case Study

    1177 Words  | 5 Pages

    partnerships, limited liability company (LLC), and corporations (S,B,C)(U.S. small business adminstration SBA). A sole proprietorship is an entity consisting of one person, and is the simplest business structure to form. The owner can conduct business under a trade name and the business can be used to test a company before reforming to a new business structure . The sole proprietors accountable for personal

  • Limited Partnership Research Paper

    1062 Words  | 5 Pages

    Introduction What is 'Limited Partnership - LP'A limited partnership (LP) exists when two or more partners unite to jointly conduct a business in which one or more of the partners is liable only to the extent of the amount of money that partner has invested. Limited partners do not receive dividends,What is a 'Dividend' A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders. Dividends can be issued as cash payments

  • Sole Proprietorship Pros And Cons

    1021 Words  | 5 Pages

    taxed as a sole proprietor, partnerships, along with S and C Corporation. This type of business entity also has less paperwork along with filing costs. The members are exempt from any liabilities or legal issues the company may experience. The most beneficial may be that owners’ responsibility for any debt is limited despite having control the company Cons: Typically corporations are more expensive to startup compared to sole proprietorship or partnerships. At times an LLC business may find when

  • The Three Types Of Business Ownership

    1373 Words  | 6 Pages

    scale chose a mixture of reinvesting profits into the business and giving their shareholders a dividend (often given annually). The liability of a company varies compared to the variety of a sole trader or a partnership owned business. A limited liability company (LLC) means that members of the company cannot be held personally liable for the company’s debts or liabilities. This is very different compared to sole traders and partnerships which can be held personally liable and have to cover any debts

  • Nonprofit Organizations Vs. Non-Profit Organizations

    1305 Words  | 6 Pages

    Non-for profit organizations A non for profit organization is an organization which is barred from distributing its profit, if any, to the individuals who exercise their control over it, among which are members, directors, officers, and trustees. The primary difference between a non for profit corporation and a for profit or "business" corporation is the absence of stocks or other indications of

  • What Are The Strengths And Weaknesses Of Sole Proprietorship

    1346 Words  | 6 Pages

    Liability is the weaknesses of the proprietorship .The business owner will be held directly responsible for any losses, debts, or violations coming from the business. For example, if an enterprise has to repay its debt, it will be satisfied from the owner's own personal fund. This is drastically different from corporations, wherein the members enjoy limited liability (i.e., they cannot be held liable for losses or violations). Another

  • GERARD Warris Case Study

    1208 Words  | 5 Pages

    GERARD WARRENS is the sole manager, officer, and director of STEALTH SOFTWARE, LLC. GERARD WARRENS ("WARRENS") resides in Cave Creek, Arizona but is domiciled in The Netherlands. He is the sole manager for STEALTH SOFTWARE, L.L.C, an Arizona limited liability company. 66. Defendant GERARD WARRENS is the sole officer, director, and owner of STEALTH SOFTWARE, B.V., STEALTH SOFTWARE

  • Salty Pawz Case Summary

    509 Words  | 3 Pages

    feel my responsibilities are to give alternatives and my recommendations with the information I have available Wanda first concern was her personal liability in connection with her company, the alternative to her sole proprietorship would be to form a corporation of the several that are available the only one that makes sense is the limited liability corp. so the options are that or remain a sole proprietorship. My recommendation would be to remain a sole proprietorship, and my reason behind this

  • Shania Case Study

    1256 Words  | 6 Pages

    Shania has five options in which to consider for her new business: sole proprietorship, a partnership, a corporation, a joint venture, or a Limited Liability Company (LLC). Shania must weigh the benefits and detriments associated with these different opportunities in order to accomplish her business goals. The advice provided will help her make a sound decision on which business form to choose. The first possibility is sole proprietorship, the easiest startup option, is where she would be the sole

  • A Bartender Explains Why The Anti-Tipping Movement Is Unethical Analysis

    322 Words  | 2 Pages

    Title of article: “A Bartender Explains Why the Anti-Tipping Movement Is Unethical” Link to article: Connection Between What’s Ethical and What’s Legal There are many connections between what is ethical and what is legal. Basically, the main difference between what is ethical and what is Legal is that ethical issues are acts that an individual might feel are wrong but are not against

  • Characteristic Of Nonprofit Organization

    752 Words  | 4 Pages

    Characteristics of a Nonprofit Organization The term "Nonprofit" is a misnomer, as a nonprofit may legally and properly make a profit, as the concept is usually understood. The most important distinction between a profit and a nonprofit organization is whether the organization abides by the "non-distribution principle". A nonprofit operates for public purposes, not for private purposes. The earnings of a nonprofit may not be distributed to members, directors, or employees, and only reasonable compensation

  • Benefits Of Partnerships

    867 Words  | 4 Pages

    In a general partnership, partners have an unlimited liability and business-related acts of one partner can legally bind all other partners. This mean that each partners have an equal responsibilities for the debts and losses incurred by the other partners. If the business is unable to repay its financial obligations or any outstanding liabilities, the partners’ personal assets can be seized by creditors to repay these debts. Partnership ceases to exist upon the partners’ retirement, death or bankruptcy

  • Nick Fury Case Study

    1390 Words  | 6 Pages

    Nick Fury, the entrepreneur of this business, should organize his company as a proprietorship rather than a partnership or a corporation. He cannot become a partnership because he is the sole owner, and will receive all of the profits. After that was determined, there were only two options left. If he were to become a corporation, because a corporation is a separate entity from the entrepreneur, then he would have to pay double the taxes than he already has done. Now if he were a proprietorship,