One of the most common business filing entities among small businesses is that of the partnership. Law firms, advertising agencies and investment services are a few examples of enterprises that commonly form under some sort of partnership.
The purpose of a partnership is to provide a legal and taxation framework under which principals can pool their skills and resources, either as an entrepreneurial startup or as a cross-business venture. There are three types of partnerships: general partnerships, limited partnerships and limited liability partnerships.
"While some businesses function successfully as general partnerships, the advantage of a limited partnership is that the limited partner is not liable for the actions of the general partner," writes AllBusiness.com. "This is advantageous if you're backing a business financially, or can't put in the same time and hands-on commitment."
But as a partnership grows or begins to reorganize its proprietary structure, it may seek incorporation. While creating a California LLC may be legally distinct from filing articles of incorporation in New York state, limited liability companies, S corporations and C corporations all serve the basic function of protecting principals from tax and debt accountability.
Tags : file for an llc, incorporation information, llc, lp
Posted: Jan 27th, 2011