double taxation, unlimited liability, general and limited partner, only partners taxed
What are some characteristics of business organizations?
arises from an agreement, express or implied, between two or more people to carry on a business for profit.
Partnership
1. A sharing of profits or losses
2. A joint ownership of the business
3. An equal right to be involved in the agreement of the business
When does a partnership exist?
is a business entity that has no tax liability.
Pass-though entity
includes almost any terms that the parties wish, unless they are illegal or contrary to public policy.
Articles of partnership
is a hybrid form that combines the limited liability aspects of the corporation and the tax advantages of a partnership.
-limited to capital contribution, managed by members, usually only members taxed.
Limited liability company (LLC)
is a hybrid form of business designed mostly for professionals who normally do business as partners in a partnership.
-limited liability to capital contribution, managed by partners, usually only partners taxed.
Limited liability partnership (LLP)
special partnerships" consists of at least one general partner and one or more limited partners.
-unlimited liability for general partners, managed by general partners, usually only partners taxed.
Limited partnership (LP)
a close business corporation that has met certain requirements as set out by the Internal Revenue Code. Qualifies for special tax income treatment.
-limited liability to capital contribution, managed by board of directors, only shareholders taxed.
S corporation
limited liability to capital income contribution, managed by board of directors, corporation taxed.
Corporation