University of Phoenix
FIN 571 week 1
(SHORTEN THE PAPER AS YOU WISH)
A business is the fruit of a seed that a sole person or a group of people bears. The decision of what type of business to open will greatly affect the company in the long run. Many options exist for the person(s) such as opening a sole proprietorship, corporation, Limited Liability Corporations, partnerships, etc. Limited Liability Corporations and partnerships are very similar company types, but also are different. Limited Liability Corporations have their owns benefits just as corporations, and each play important roles in business. The decision of picking the type of business to open shouldn’t be rushed; the decision has many factors that have to be taken into consideration before deciding the choice of a business.
Limited Liability Corporation – a business that “is a business structure allowed by state statute” (IRS, 2011). A Limited Liability Corporation in essence is a non-human entity. A Limited Liability Corporation is considered a mixture of a corporation and a partnership