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A United liability company is the newest form of business organization, gaining popularity in recent years A limited liability c
A United liability company is the newest form of business organization, gaining popularity in recent years A limited liability c
admin
2014-01-06
29
问题
A United liability company is the newest form of business organization, gaining popularity in recent years A limited liability company (LLC) is a type of business ownership combining several features of corporation and partnership structures. But every coin has two sides LLC also have advantages and disadvantages.
Advantages
Limited liability: Owners of an LLC have the liability protection of a corporation Members cannot be held personally liable for debts unless they have signed a personal guarantee. Flexible profit distribution: Limited liability companies can select varying forms of distribution of profits
No minutes: the LLC business structure requires no corporate minutes or resolutions and is easier to operate.
Flow through taxation: All the business losses, profits and expenses flow through the company to the individual members (People avoid the double taxation of paying corporate tax and individual tax
Disadvantages
:
Limited life: Corporations can live forever, whereas an LLC is dissolved when a member dies or undergoes bankruptcy.
Going public: (Business owners with plans to take their company public, or issuing employee shares in the future, may be the best served by choosing a corporate business structure. Added complexity: running a sole-proprietorship or partnership will have less paperwork and complexity. An LLC may be classified as a sole-proprietorship, partnership, or corporation for tax purposes Classification can be selected or a default may apply.
What is the passage mainly about?
选项
A、The structures of the limited liability company
B、The finance of the limited liability company
C、The merits and demerits of the limited liability company
D、The cooperation of the limited liability company
答案
C
解析
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