Limited Liability Company

A Limited Liability Company (LLC) can be defined as a business entity that incorporates some aspects of a corporation together with those of a partnership/sole proprietorship. The LLC is relatively a new concept in the United States which was geared towards helping small businesses have accessibility to the benefits that are often associated with corporations while maintaining their small model of operation. This form of company is therefore flexible as it borrows from the two models and can be referred to as a hybrid business (Daily, p 42).

This type of business is also known as ‘a company with a limited liability’. This paper shall aspire to define a limited liability company and give its role in accounting. Limited Liability Company: Even though LLC is a business entity, it is usually a form of unincorporated association and at the same time not a corporation. It however shares critical elements from both the corporation and the partnership form of business.

Don't use plagiarized sources. Get Your Custom Essay on
Limited Liability Company
Just from $13/Page
Order Essay

From the corporation, the LLC borrows the limited liability element whereas from the partnership, it borrows the element of pass-through income taxation (IRS. gov, para 1). The LLC provides great relief for business people who are operating as sole proprietors since the tax benefits are by far more valuable compared to the liability reducing benefits associated with incorporations. An LLC in most instances has to choose its tax status on whether to be treated as sole proprietorship or a corporation (McGuigan, para 2).
With the LLC, the limitations of the liability are very crucial as they remove the burden of bankruptcy and debt issues from the owners which may drastically affect his/her credit rating. Thus personal assets are usually protected in the event that the business entity is faced with law-suits (Friedman, p 79). Work Cited: Daily, Frederick W. Tax savvy for small business: year-round tax strategies to save you money. 1999. Nolo; ISBN 0873375343, 9780873375344
Friedman, Scott E. How to Profit by Forming Your Own Limited Liability Company. 1995 Dearborn Trade Publishing; ISBN 0936894938, 9780936894935 IRS. gov. Limited Liability Company (LLC). Retrieved on 8th July 2010 from; http://www. irs. gov/businesses/small/article/0,,id=98277,00. html McGuigan, Brendan. What is a Limited Liability Company? 2010. Retrieved on 8th July 2010 from; http://www. wisegeek. com/what-is-a-limited-liability-company. htm

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 20% with the discount code WELCOME