CORPORATIONS, LLC & PARTNERSHIPS
Corporations, limited liability companies (LLCs), and partnerships are different types of business arrangements with unique qualities. One thing they all have in common, however, is the potential for a dispute amongst members that could compromise the business’ success.
What Is Right For Me?
What Is an LLC?
A limited liability company is a fusion of partnerships and corporations. It is not as formal as a corporation, in that it does not require bylaws, meetings, or a certain number of members, but LLCs have their downsides, as well. If the membership of an LLC disbands, the business will likely be dissolved, whereas corporations can endure. Similar to a corporation, however, members of an LLC are not personally liable for any of their business’ shortcomings or failures.
What is a Partnership?
A business shared between two owners who split profits is called a partnership. While they may not be taxed as heavily as the members of a corporation, they may be exposed to greater liability.
Business disputes can have a profound effect on the success of a company. When members disagree, investments may be withdrawn as a result. To protect the interests of a business and all of its members, disputes should be approached cautiously. In some cases, the assistance of a business attorney may be necessary.