Limited Liability Partnership Essay Example | Topics and Well Written Essays - 750 words

Limited Liability Partnership - Essay ExampleThis business entity will be registered in the US under the state laws of the country. As an entrepreneur, I assimilate identified two other investors who have a similar objective of establishing a friendly communication company in the US that will link up people through a website. In order for people to communicate, they will have to register and give their personal details that will differentiate them from other persons. Under this communication plat stool, we will earn our income from advertisements, which are posted, on our websites. This factor that the high the number of registered social networkers, the greater the outreach of advertisements. We intend to have a global presence and a minimum of 250,000 registered people by the end of the first financial year. To achieve our noble idea, we have decided to form a partnership business with the two investors. We will register our partnership business under the supply Partnership A ct of 1996 that govern partnership businesses in the US. Our business will be a contain indebtedness partnership that will strictly accompany the regulations laid by the Act. Limited liability partnership has several advantages that have fascinated us to form a partnership business. Under the limited liability partnership, all the partners in the business will be limited depending with their individual contributions to the business. In the partnership agreement, we have decided that each partner will render as to the business. This means that the amount of liability will be treated equally to all partners. Moreover, the profits and losses will be shared equally to the partners. Besides, all partners should participate equally in tweakment of our partnership business in order to achieve our vision, mission, goals, and objectives. Various factors have riveted us to form a limited liability partnership. Limited liability partnerships are advantageous in that they are easy to estab lish and manage as compared to corporations and companies. Limited liability partnerships overlook no minimum capital to be established as compared to other forms of businesses, such as companies and corporations. The partners in the agreement decide the amount of capital in this form of business. Limited liability partnerships have few legal formalities required to establish the business. For instance, a few numbers of partners, 2, are required to form the partnerships as compared to a companys 50 members. In management of our partnership business, designated partners, who are in charge for ensuring the compliances of all applicable laws, will manage daily operations of limited liability partnership. Limited liability partnerships are advantageous in that the partnerships are treated as separate legal entities from their owners. This means that the partners cannot be sued individually for the liabilities resulting from the partnership. This means as limited liability partners, we are obliged to take responsibility of the partnership business through proper management. Furthermore, limited liability partnerships and their members are treated as distinct and separate from each other (Bouchoux 34). These depicts that a partner will be accountable for the duties bequeathed upon them by the partnership. Additionally, partners in this form of business organization are not held responsible for the acts of other partners and their personal assets are treated separately and never exposed unless there is a case of fraud. Limited liability partnerships are flexible as compared to companies. Flexibility of limited liability partnerships is brought about by the minimal legal requirements to establish the partnership. such(prenominal) an example is the minimal amount of capital required to