Forming an LLC in Oman: Types and Requirements

Limited Liability Company ( Llc ) And Joint Venture
Limited Liability Company (LLC) and Joint Venture A limited liability company can be best
depicted as a hybrid between a corporation and a partnership Kubasek, (2015). Like a corporation
regarding limited liability, and its similarities to a partnership, in regards to the adaptability of
dividing profit among the proprietors. Also, adaptability with respect to how profit and management
authority are resolved (Oon, 2012). Shania would need to go into an extremely detailed agreement
that spells out every one of the subtle elements of the business. The Colorado Limited Liability
Company Act was received in 1990. An LLC consolidates the concepts of organizations for tax
purposes and corporations for liability purposes (The Colorado Business Resource Guide). On the
off chance that Shania decide to open her business as a Joint Venture. She will go into a private
agreement to finance, create, and sell goods, securities, or commodities for a limited purpose, as
well as a limited time Kubasek, (2015). This specific venture does not address her needs. It would
take an excess of time and endeavors to shape the right relationship, imbalance in the offer of
capital, expertise, investment, et cetera. Likewise, absence of accepting obligation by the partners.
This can lead this partnership to crumble. Which Business Form Subsequent to inspecting, the
business structures and thought that will best achieve Shania's business objectives. I would
encourage Shania to begin her
... Get more on HelpWriting.net ...

Benefits Of An Limited Liability Company From A Legal...
The LLC remains a limited liability company from a legal standpoint, but for tax purposes it can be
treated as an S–Corp. Be sure to contact the state 's income tax agency where you plan to file your
election form. Ask about the tax requirements and if they recognize elections of other entities (such
as the S–Corp).
Advantages of an LLC:
Limited Liability. Members are protected from personal liability for business decisions or actions of
the LLC. This means that if the LLC incurs debt or is sued, members ' personal assets are usually
exempt. This is similar to the liability protections afforded to shareholders of a corporation. Keep in
mind that limited liability means "limited" liability – members are not necessarily shielded from
wrongful acts, including those of their employees.
Less Recordkeeping. An LLC 's operational ease is one of its greatest advantages. Compared to an
S–Corporation, there is less registration paperwork and there are smaller start–up costs.
Sharing of Profits. There are fewer restrictions on profit sharing within an LLC, as members
distribute profits as they see fit. Members might contribute different proportions of capital and sweat
equity. Consequently, it 's up to the members themselves to decide who has earned what percentage
of the profits or losses.
Disadvantages of an LLC:
Limited Life. In many states, when a member leaves an LLC, the business is dissolved and the
members must fulfill all remaining legal and business obligations to close

Palmer 's Concrete Limited Liability Company
Palmer's Concrete Limited Liability Company Palmer's Concrete is an independent owned limited
liability corporation that uses concrete to build sidewalk curves, and lay foundations for any
edaphic. Palmer's Concrete Limited Liability Company is based in the historical city of Pensacola,
Florida and is located in the historical Brownsville area. The overall mission of Palmer's Concrete is
to form a foundation professionally for the moral structure of the individual, the businesses, and
secure an affiliate friendship with other local business with similar administrations (Floyd Palmer,
personal communication, November 15, 2015). Floyd recalls that his family has always been a
philanthropist, and C.E.O's of their own businesses. Floyd ... Show more content on Helpwriting.net
...
Plus, there is a base for the company, but no exact establishment of a business office because other
than Floyd no one knows how to negotiate construction contracts effectively. The information
gathered for this individual learning project is from an interview with Floyd Palmer, owner, third
generation philanthropist, and C.E.O of Palmer's Concrete Limited Liability Corporation.
Strengths, Weaknesses, Opportunity, Threats A qualitative analysis (QA), on the strengths,
weaknesses, opportunities, threats (SWOT), critical success factors (CSF) of the corporation and the
overall mission of its success. One of Palmer's Concrete strengths at the beginning of its conception
is experience.
Strength
According to Floyd Palmer, (personal communication, November 15, 2015), experience is the
founding strength to Palmer's concrete as Floyd himself has a combined thirty years. Total Quality
Management is important for Palmer's concrete, therefore as C.E.O focusing on the customer,
having a strategic approach to improvement, and encourage mutual respect, plus teamwork is all
important (Blocher, Stout, Juras, & Cokins (2013). Other strengths of Palmer's concrete are being
family owned, traditional inventory, and the business location in an historical district, but like most
corporations, there are times when the economy is nondiscriminatory.
Weakness
A weakness

Safilo Group : A Limited Liability Company Registered
Safilo Group is a limited liability company registered in Italy. The registered office is located in
Pieve di Cadore, whereas the administrative headquarters are located in Padua at offices of the
secondary Safilo Spa. Safilo Group has been in the eyewear market for eighty years and is the
second worldwide producer of sunglasses and prescription frames. Safilo is active in the design,
manufacture and wholesale and retail distribution of eyewear products.
Safilo is the global leader in the high–end eyewear segment of the market and also one of the top
three sports eyewear producers and distributors worldwide. Safilo is vertically integrated, which
means they design, produce and distribute their entire product assortment. Safilo's distribution is
through many markets such as Canada, SLA, Europe, and 3O market, both specialized outlets and
retail distribution chains. Safilo takes pride in their production–distribution chain which consist of
these phases: research and technological innovation, design and product development, planning,
programming and purchasing, production, quality control, marketing and communication, sales,
distribution and logistics.
Safilo has a strong team that is focused on the development and design of their products; this is on
of the company's key strengths. Their team of designers guarantees constant technical and stylistic
innovation.
Safilo has both licensed and house brands; this helps Safilo have a clear separation strategy of
customers. Since

A Limited Liability Company
iA Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are
popular because, similar to a corporation, owners have limited personal liability for the debts and
actions of the LLC. Other features of LLCs are more like a partnership, providing management
flexibility and the benefit of pass–through taxation.
Owners of an LLC are called members. Since most states do not restrict ownership, members may
include individuals, corporations, other LLCs and foreign entities. There is no maximum number of
members. Most states also permit "single member" LLCs, those having only one owner.
A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check
your state's requirements and the ... Show more content on Helpwriting.net ...
* LLCs in most states are treated as entities separate from their members, whereas in other
jurisdictions[which?] case law has developed deciding LLCs are not considered to have separate
legal standing from their members (see recent D.C. decisions[which?]). * LLCs in some states can
be set up with just one natural person involved. * Less risky to be "stolen" by fire–sale acquisitions
(more protection against "hungry" investors). * For Real Estate companies, each separate property
can be owned by its own, individual LLC, thereby shielding not only the owners, but their other
properties from cross–liability.
Limited liability companies are the popular new choice for business start–ups. The "LLC" has only
been in existence for roughly 26 years and there are some definite pros and cons.
A limited liability company is a creature of state law. Prior to the late 1970s, it had never been a
choice for businesses because it didn't exist. In the late 1970s, the State of Wyoming passed an act
creating it. It took another ten years or so before other states caught on. Once they did, the mad rush
was on to pass legislation allowing for the creation of LLCs in nearly all states. The world of
business entities had been changed forever.
The LLC is a business entity designed to help small business. As a result, most of the positive
reasons for using it are catered to such business. In a general view, the entity is heavily

Types Of Setting A Limited Liability Company In Oman
Business set up process and requirement in Oman Establishment of Business Foreign companies and
individual investors those who wish to set up a business and run the operation in Oman must follow
one of the following five forms such as Limited Liability Company (LLC), Joint stock company,
Branch, Commercial Agency, Commercial Representative Office. Limited Liability Company (LLC)
In terms of forming a limited liability company in Oman, foreign individuals or company investors
need to find an Omani partner with a minimum 30% holding share where minimum OMR 150,000
($390,000) is required as capital in the registration purpose for limited liability company with
foreign participation. It is ... Show more content on Helpwriting.net ...
Branch Executing is the purpose of the foreign companies and they may register a branch in Oman
only to execute a contract with the government or a quasigovernment body. The most important
thing is registering as branch is limited to the duration of the underlying contract, but special
dispensation may be given without a government or semi–government contract in terms of setting
up a branch in Oman. If the activity is deemed by the Council of Ministers to be of national
importance, in that case it could be allowed. Commercial Agency Foreign companies get the
preference in setting up business without commercial registration in Oman and running business
through commercial agents. Under the Commercial Agency Law in Oman, the agency agreements
are formally registered with the Ministry of Commerce and Industry (MOCI) which is
recommended. Commercial Representative Office In the purpose of marketing and promotion of a
certain company's product or service, a foreign firm may open a commercial representative office
solely in Oman and the representative office is not allowed to sell products or services or to engage
in other forms of commercial activity which is recommended. On the other hand, a representative
office may sponsor and hire

Benefits Of A Company 's Limited Liability Corporation (...
PASS.com will a member run Limited Liability Corporation (LLC). By using this business structure
our founding members are able to blend the advantages of a partnership with the advantages of a
corporation. This form of business offers our founding members many of the benefits of a sole
proprietorship/partnership while reducing the exposure to unlimited liability.
Moreover, LLC's offer many of the advantages of both the closely held forms of business (Sole
Proprietorship, Partnerships, and limited partnerships) and those of the corporate forms of business.
Most notable; reduced personal liability, relative simplicity to form and reduced regulatory
operation burden to the owners. Following are the key reasons that our founding members have
chosen to incorporate as an LLC:
 Liability: The name of this form of business accurately describes one of its greatest advantages:
limited liability. LLC's share the same limits of liability afforded to corporations. Our owners are
limited in personal liability since the company and the owners are separate legal entities: just as in a
corporation. However, each of our founding members is willing and able to assume personal
liability for financial funding. Waiving the veil of financial liability protection is allowed under state
LLC rules (Small Business – Chron.com, 2015)
Income taxes: With an LLC our members have the most flexibility for taxation; our company can
choose the form of taxation that best suits our member needs

Limited Liability Companies
After reading the case of Alex, Bill, Carl, and Devon's business, me being their accountant, a type of
business I would suggest them will be a Liability Limited corporation. Based on their needs LLC
would be a perfect form of business for them. As their company was sole proprietorship ran by their
dad, LLC offers some advantages of a corporation, as well as some advantages of a sole
proprietorship. "A limited liability company, commonly called an "LLC," is a business structure that
combines the pass–through taxation of a partnership or sole proprietorship with the limited liability
of a corporation." (Nolo, 2014, n.a.) The characteristics of LLCs and a partnership company are
somewhat similar as they both provide flexibility to the management and also the benefit of pass–
through taxation. The Owners of an LLC are called members. As most states do not have any limit
on ownership, members can be individuals, companies, other LLCs and foreign individuals. There is
no limit on the number of members in LLC. Some LLC also have only one owner, which is called a
single member, and it is allowed in most of the states. Most states do not restrict ownership, and so
members may include individuals, corporations, other LLCs and foreign entities" (irs.gov, 2014)
There are some important factors that Alex, Bill, Carl, Devon and Xavier should know before they
move forward to convert their business into Limited Liability Company.
Ease and cost of formation In order to establish LLC, an

Advantages And Disadvantages Of Limited Liability Companies
Limited liability companies
Generally, the liability of company's members is limited. Where the company is limited by shares,
the liability of a member is limited to the extent of the nominal value of the shares held by him in so
far as this has not already been paid by him. If the shares are fully paid up in such case the liability
of members of company is nothing. However, in case of company limited by guarantee each
member is liable to contribute a specified amount to the assets of the company in the event of its
being wound up. In J.H. Rayner (Mincing Lane) Ltd. v. Deptt. Of Trade and Industry, the House of
Lords observed that where the subscribers, opted to register the company with limited liability, the
members' liability becomes limited. ... Show more content on Helpwriting.net ...
The relevant sections include:
Section 213 of the Insolvency Act 1986
If, in the span of the winding up of an organization, it appears to the court that any business of the
corporation has been carried with intention to defraud creditors of the organization or creditors of
any other individual, or for any deceitful purpose, anybody involved in the business can be called
upon to contribute to the debts of the organization. In Morphitis v Bernasconi and others the court
held that it did'nt really follow that wherever a fraud on a creditor was executed in the course of
carrying on a business that the business was being done with goal to defraud creditors.
S 214 of the insolvency act 1986
The section says that at some time before the organization entered insolvent liquidation there will
have been a point where the directors knew it was wrong and the corporation could not trade out of
the circumstance. The sensible director would stop at this point continue trading. If he still continues
to trade he risks having to contribute to the debts of the company under

The Legal Structure Of Limited Liability Company Essay
Business Structure:
I have chosen the business name of SamRose Productions. I have chosen the legal structure of
Limited Liability Company.
Facilities:
I will have an office located in southern California. I will be located near the Los Angeles area.
Business Structure:
I am currently working on which professional organizations that I want to join. The film company
will be more successful through networking.
Facilities:
I am currently working on what the zoning requirements are. The zoning requirements are important
in picking the area for the location of my company. I am researching what equipment I will need to
have for my company.
Governmental:
I am currently researching what business licenses, tax license, and permits are needed to start my
company.
Financials:
I am currently working on what I will have as my start up capital. I am working on what part of that
capital will come from credit.
Marketing:
I am currently working on a company website. I am currently working on starting social media
accounts to link to my company website. I am currently working on the marketing campaign.

Employees:
I am currently working on what type of employees I will need to startup the company. I am currently
working on the job descriptions for these employees.
Business Structure:
I will need to complete the break down of the Limited Liability Company structure that I want for
the company. I still need to register the business name. I need to join professional

Limited Liability Company ( Llc )
Alternative 1. Limited Liability Company (LLC)
The first alternative is a Limited Liability Company or abbreviated a LLC. "As an LLC your
personal assets are protected from lawsuits and business debt, and only assets of your company can
be touched by lawsuits and creditors" (Small Business – Chron.com, 2015). With a LLC you have
plenty of advantages to include the benefit of always upgrading to another business organization and
having the security and peace of mind of limited liability. It is also easier to form than a corporation.
There are also disadvantages to include self–employment taxes. "Unless you choose to be taxed like
a corporation, LLCs are usually subject to self–employment taxes. This means that the profits of the
LLC won't ... Show more content on Helpwriting.net ...
Corporation
The second alternative is a corporation. One can form as an S corporation of C Corporation. "A C
corporation is double–taxed. The corporation pays taxes, as do the company's shareholders. S
corporations are single–taxed. All taxation and business expenses are paid for by the company's
shareholders" (Small Business – Chron.com, 2015). There are some advantages to this form. You are
not personally liable for lawsuits and debt. It is easier to attract investors for your business. S
corporations are "limited to a maximum of 100 shareholders and a C corporation can have unlimited
shareholders" (Small Business – Chron.com, 2015). The corporation is "a stand–alone entity, which
means you are not personally liable for the assets and debts of the business" (Small Business –
Chron.com, 2015). "The stand–alone entity also separates tax liabilities, which is another advantage.
This means that the corporation taxes are separate from your personal tax liabilities. As a business
owner, you are responsible for paying taxes only on the money the corporation pays you in the form
of a salary, commission or dividends––this is on your personal tax return. The corporation is
responsible for paying corporate taxes (at the corporate tax rate) on any profit the company makes"
(Small Business – Chron.com, 2015). There are also some disadvantages. First, the costs can be a
disadvantage. "One of the primary disadvantages of a corporation is the costs for running a
corporate form of

Palmer's Concrete Limited Liability Company
Palmer's Concrete Limited Liability Company Palmer's Concrete is an independent owned limited
liability corporation that uses concrete to build sidewalk curves, and lay foundations for any
edaphic. Palmer's Concrete Limited Liability Company is based in the historical city of Pensacola,
Florida and is located in the historical Brownsville area. The overall mission of Palmer's Concrete is
to form a foundation professionally for the moral structure of the individual, the businesses, and
secure an affiliate friendship with other local business with similar administrations (Floyd Palmer,
personal communication, November 15, 2015). Floyd recalls that his family has always been
philanthropist, and C.E.O's of their own businesses. Floyd started ... Show more content on
Helpwriting.net ...
Plus, there is a base for the company, but no exact establishment of a business office because other
than Floyd no one know how to negotiate construction contracts effectively. The information
gathered for this individual learning project is from an interview with Floyd Palmer, owner, third
generation philanthropist, and C.E.O of Palmer's Concrete Limited Liability Corporation.
Strengths, Weaknesses, Opportunity, Threats A qualitative analysis (QA), on the strength,
weaknesses, opportunities, threats (SWOT), critical success factors (CSF) of the corporation and the
overall mission of its success. One of Palmer's Concrete strengths at the beginning of its conception
is experience.
Strength
According to Floyd Palmer, (personal communication, November 15, 2015), experience is the
founding strength to Palmer's concrete as Floyd himself has a combined thirty years. Total Quality
Management is important for Palmer's concrete, therefore as C.E.O focusing on the customer,
having a strategic approach to improvement, and encourage mutual respect, plus teamwork is all
important (Blocher, Stout, Juras, & Cokins (2013). Other strengths of Palmer's concrete are being
family owned, traditional inventory, and the business location in an historical district, but like most
corporations, there are times when the economy is nondiscriminatory.
Weakness
A weakness Palmer's

Case Study: The Benefits Of A Limited Liability Company
This case study deals with persuading the acquaintances regarding the type of business a business
starter should adopt. The acquaintance is intending to start a new as general partnership. The case
study deals with presenting the benefits of Limited Liability Company and the reasons that make a
limited liability company a better option. For the purpose of this case study a brief insight will be
provided on the both the types of business that is the general partnership and the limited liability.
Further, the paper will elaborate the benefit that choosing the limited liability option to start business
will cater. Analysis of the Case Study General Partnership In a general partnership, two or more
persons are required to carry out the business activity. In the general partnership, the loss and profit
flows through to the partners. The business is not a separate tax entity. The share of profit or loss
that the partners receive report on their individual income tax returns. Generally, in the partnerships,
the members enter through written ... Show more content on Helpwriting.net ...
Limited liability has a separate legal existence from its owners (known as members). In order to be a
member of limited liability, all members are required to enter into an operating agreement. For the
tax purpose, the company is not treated as a separate tax entity. LLC has the feature of partnership
i.e. the owner's reports losses and profits of businesses in their personal income tax return. The
limited liability clause prevents the partners from personal liability of the debt of the business. This
means that in case of any debt lawsuit only the assets of the business are at

Limited Liability Companies ( Llc )
Limited liability companies (LLC) in my opinion would be the best way to go to start up a business.
With the ability of choosing which regime of taxation the business will identify with, protection
from liability for the debts accrued by the business, no double taxation on business and member, and
having the business counted as a separate entity, LLCs enjoy many of the benefits that corporations
do, while being counted as a default partnership where new LLC laws do not cover an issue.
Opening a restaurant as an LLC is ideal because of the lesser amount of paperwork that has to be
done, and the ability to have numerous members, permitting LLCs to exercise more efficiency
which saves time advertisement startup capital per member. While LLCs ... Show more content on
Helpwriting.net ...
Firstly, sensibly, the name must be unique. No LLC may use an existing name to identify as, to
prevent tax and brand confusion. Secondly, the business must identify clearly as an LLC somewhere
in its brand name. Last, one cannot include a restricted or prohibited word in the name of the
company, such as anything that can identify as a federal or state institution or infers that
professionals are part of the company where there are no such beings. As long as the business
follows these three rules, the business name will be automatically filed with the state, easing the
creation of the business by limiting the amount of paperwork to non–duplication. The SBA goes on
to state that one must file articles of organization, which "is a simple document that legitimizes your
LLC and includes information like your business name, address, and the names of its members.
Following this, it is prudent to create a business hierarchy, so that everyone involved in the business
knows what they should be doing, and how much of the operation is their responsibility. One should
then file the appropriate documents with the correct federal, state, or local offices, in order to receive
a license to operate. Some states require that new business announce their presence in local
newspapers, but either way, one should hire appropriate staff for the type of business one is
beginning. The advantages of forming an LLC, as stated before, allow members to enjoy tax and
liability protection.

Business And Limited Liability Company
Business can be run through different platform considering advantages the platform will offer.
Limited liability Company is chosen over general partnership to be more advantageous. Limited
Liability Company and general partnership are compared based on flexibility of business, continuity
of business in case of transfer of ownership, and also the risk of possession of personal assets and
risk of incurring business debt. 1.0 INTRODUCTION New business with more than single owner
may consider being Limited Liability Company or general partnership. General partnership requires
two or more people to agree to own and run a company for profit where management duties are
shared among them including profits and loss. In contrast, a single member can own, manage and
operate Limited Liability Company. A limited liability company with single owner can easily set up
business strategies and guidelines without getting approval from anybody. General partnerships are
not mandated to be registered with Registrar of companies. Partners are expected to disclose
information to one another according to The Partnership act 1890 which applies to general
partnership. Limited Liability Company is treated as a separate legal entity according to companies
Act 1985. General partnership are formed when the partners begin business activities and not
formed by state

Advantages And Disadvantages Of Limited Liability Company
Answer 1
Limited liability refers to a condition whereby in a company limited by shares, on insolvent
liquidation, liability of members to make up for the shortfall is limited. Limited liability along with
separate legal personality is widely regarded as a means to encourage entrepreneurship by allowing
business investors to separate personal and corporate assets.
Driven by the advantages of limited liability, today, new limited liability forms of business
organizations have emerged. One of these is known as the Limited Liability Company (LLC), a
hybrid entity designed to combine the tax advantages of partnership with the benefits of limited
liability.
The law makes efforts to control the worst excesses or irresponsible behavior to curb possible ...
Show more content on Helpwriting.net ...
Based on my understanding of case law, it is reasonable for courts to lift the corporate veil if special
circumstances exist. Conversely, there are some cases which at first instance may appear as
justifiable for lifting the veil, when in reality they are not.
To begin with, the circumstances which call for courts to lift the veil include the application of
evasion principle. The courts may disregard the corporate veil if a defendant has exploited the
corporate structure to evade obligations enforced on him by law or if the defendant tries to evade
rights that third parties already have against him.
In both cases, Gilford Motor Co. Ltd v Horne and Jones v Lipman, the Courts called for lifting the
veil of incorporation against the defendants, for evading an existing legal obligation to the plaintiffs
by interposing a

Proprietorship, Biability Company, Limited Liability...
There are several categories under which business entities can be formed. Sole Proprietorship,
Partnership (General or Limited), Limited Liability Companies (LLC) and S or C Corporations are
the options entrepreneurs have to give legal form to their business. Each has distinctive
characteristics on their tax treatment and legal procedures. The decision of what kind of entity form
affects the daily operations and investment opportunities for the business, hence the importance of
selecting the entity that can better serve the business model and the owners.
Sole Proprietorship is the most basic and simple form of business and it does not require to be
formally organized with the state. Under this kind of entity, the owner directly assumes the ... Show
more content on Helpwriting.net ...
Limited Liability Companies are treated by default as a Partnership (flow–through) for tax purposes,
however, because of the "check–the–box" regulation Section 7701, LLC owners can elect to have
their entity treated as a C Corporation for tax purposes and then opt for the S corporation tax
treatment which would allow them to be taxed as a flow–through. Corporation are treated by default
as C corporations and are taxed based on corporations' tax rates, the "check–the–box" regulation
allows the business owners to opt for the S corporation option and pay taxes as a flow–through
corporation.
Based on the presented information about the different forms of organization, in my opinion a
Limited Liability Company is the best option for the presented case, considering the initial stages of
the business, the characteristics of the owners and the extent of the operations. The Limited Liability
Company will allow them flexibility on their arrangements under the flexible statute which allows
the members "to alter those dissolution and transferability provisions by agreement". This form of
organization also limits the liability of the owners, since the company is considered a separate legal
entity, creditors won't have claims to their personal assets if the business default on payment.
Another important advantage of selecting this form of organization is that the owners have taxation
flexibility, "the check the box regulations allow

Limited Liability Company
The parties of an LLC have particular rights like voting decisions which impact the Limited
Liability Company. The members of an LLC openly manage the firm and are likely to receive
revenue allocations, tax remunerations as well as losses which are different from their membership
interest. Members also have duties of trust which are sometimes called fiduciary duties. Several
Limited Liability Companies are managed by its owners, and some are operated by managers.
Members have a duty of loyalty to the entity (Fitzpatrick, 2018). Under the duty of loyalty, members
have the responsibility of putting the achievement and benefits of the company above their
advantages. Members ought to act honestly when dealing with the company and avoid any
conflicting interests between the company goals and personal goals. A member is supposed not to
take secret advantage of the business opportunities or hoard secret profits from the commercial
activities of the company (Fitzpatrick, 2018). Members also have a duty of care, and they are
required to act in a decent manner as well as exercise reasonable care in performing their duties. For
instance, if your Limited Liability Company wants to purchase a piece of land, one is obliged to act
responsibly and ... Show more content on Helpwriting.net ...
Creditors together with litigators ought to go after the business property other than the owners'
property. According to Stones, "There are circumstances however that an owner of an LCC can be
held liable one of them is an ordinary liability (Stone, n.d.)." As far as ordinary liability is
concerned, only Limited Liability Company property is used to pay off the company debts, and the
owner will only lose money that they invested. Owners of the LCC can also be liable for lawsuits
against the company if the owner has individually injured somebody and caused financial loss
during business operations (Miller & Hollowell,

State Statutes Authorize The Formation Of Limited...
State statutes authorize the formation of limited liability companies to operate as unincorporated
entities with legal identities separate and distinct from their members. With Wyoming being the first
state in the nation in 1977 to recognize LLCs as a legal structure for operating a business, all fifty
states now have statutes authorizing LLCs.
Characteristics of an LLC
Limited liability companies possess characteristics of both partnerships and corporations. Like a
partnership, an LLC is a pass–though entity for tax purposes. Many businesspeople find this feature
particularly appealing because of the avoidance of double taxation. On the other hand, members of
LLCs enjoy limited liability as do the shareholders of a corporation. Where owners of a corporation
are called shareholders, the owners of an LLC are referred to as members. In most states, members
may include individuals, corporations, and other limited liability companies. Like a corporation,
most state statutes do not place a limit on the number of members comprising an LLC, and all fifty
states allow for a single–person LLC, i.e., only one member.
The Supreme Court of Delaware made the following observation about limited liability companies:
The limited liability company ("LLC") is a relatively new entity [in 1999] that has emerged in recent
years as an attractive vehicle to facilitate business relationships and transactions.... [It] is seemingly
a simple concept – to permit persons or entities ("members") to

The Impact Of Limited Liability On The Holding Company And...
The analysis undertaken in this essay will explain the significance of limited liability in respect to
the holding company and its subsidiaries and how creditors are affected by limited liability when
suffered by losses due to unrecoverable debts unless able to prove that the holding company knew of
the subsidiary insolvency. As well we will look at how s588V allows creditors to be able to recover
some of their losses if the courts are able to justify the piercing of the corporate veil of the holding
company by proving that the holding company was aware of the subsidiary's insolvency status this
will allow the subsidiary's liquidator to obtain assets from holding company to fund subsidiary's
liabilities.
A company is a legal personality which 'comes into existence as a body corporate at the beginning
of the day on which it is registered until the company ceases trading. It 'has the legal capacity and
powers of an individual both in and outside this jurisdiction meaning it is considered as a legal
person who is separate from its owners, directors, members, employees and agents and that a
company has its own rights and obligations, able to own and dispose of property, enter into
contracts, able to sue and be sued and has limited liability. Salomon v Salomon & Co Ltd is a
leading case demonstrating this legal principle in practice that a company is entitled to be treated as
separate legal entity irrespective if the owners or shareholders are one person or numerous, as

Formation Of A Business, Corporation, And Limited...
Formation of a Business
Providing for your family is a requirement. Some men and women go to work daily in an effort to
make sure bills are paid, and food is on the table. All jobs are not easy; some are mentally stressful,
and others are hard on your body. With all this being said, the American dream is to go into
business, someday. Some ways of going into business are through sole proprietorship, partnership,
corporation and limited liability companies. This paper will discuss the different formation of a
business and advantages/disadvantages, the tax and liability issue of each and the form of business I
would choose if I started my own business.
There are typically four way to form a business. Sole proprietorship, partnership, corporation
(C/SCorp) and limited liability companies are the traditional ways of going into business. A sole
proprietorship is not a true business entity because it consists of only one individual operating a
business (Jennings, 2015). Any individual can become a sole proprietor, because there are no
requirements for formation. Most of your mom and pop stores fall under sole proprietorship. There
are advantages associated with owning your business. Sole ownership mean that you are your own
boss, you answer to no one. Benefits like tax deductions and the right to claim a oss against your
business during tax season are perks. Disadvantages of sole proprietorship are the owner assumes all
risk financially and is liable for all credit and loan on

The Pros And Cons Of Llcs
The general manager of the hotel is responsible for monitoring all the departments that come right
under him then assistant of the general manager helps him to get tasks done , especially when there
is a pressure . Then departments such as accounting that's responsible for recording and reporting
the cash flow transactions of a company it has some key roles and responsibilities, including
accounts receivable, accounts payable, payroll, financial reporting, and maintaining financial
controls. Engineering department takes care of hotels maintenance in case of any damages that
might occur. Sales & marketing department promote the hotel and sell rooms to guests , make
contracts with other companies . Security protect staff and all people inside ... Show more content
on Helpwriting.net ...
If you have a fast growth internet company that needs venture capital to scale, this limitation is one
of the major disadvantages of a limited liability company. Government regulation: Because of the
protections afforded to LLCs, some types of businesses are ineligible to file as LLCs. Banks,
insurance companies, and medical service companies are examples of businesses that may be barred
from filing in your state. These rules can vary from one state to the next, however. So find out from
a business formation lawyer whether an LLC is a possibility for your company. Lack of case law:
The LLC business form is a relatively new concept. As a result, not a lot of cases have been decided
surrounding LLCs. Case law is important because of predictability. If you know a court has ruled a
certain way, you can act accordingly to protect yourself. But if few laws have been established yet,
there is a certain level of vulnerability with your operations that could expose you to greater

A Business Entity Structure Like Limited Liability Company
In today's era they're many business structures like sole proprietorships, partnerships, limited
liability companies (LLC), and corporations in which individuals uses to start their own business.
Any types of business structure that you may choose will have legal and tax implications (SBA,
2016). If I were to start my own business, I would choose a business entity structure like Limited
Liability Company (LLC). A limited liability company is a mix type of legal structure that provides
the limited liability features of a corporation and the tax efficiencies and operational flexibility of a
partnership (SBA, 2016).
Types of Business Structure
There are several business structures that one could use to start a new business and to make a
present business much more operative and inclusive. The business structures that will be talked
about in the paper are:
Sole proprietorship
Partnerships
Limited liability companies (LLC)
Corporations
Sole Proprietorship
A sole proprietor is the most modest and common structure chosen to start a business (SBA, 2016).
Someone who owns an independent business is usually a sole proprietor. They are no legal action
needed to form a sole proprietorship. Sole proprietors are entitled to all profits and are responsible
for all your business's debts, losses and liabilities (SBA 2016).
Steps to form: Sole proprietorship is a popular business form due to its simplicity; ease of setup and
at minimal cost (Staff, 2016). You must obtain required

Business Possession : Sole Proprietorship, Association,...
There are four essential sorts of business possession: sole proprietorship, association, company, and
Limited Liability Company. Every one has its focal points and disservices. In the event that you are
to begin a business there are a couple of inquiries in which to ask yourself. What is your vision in
regards to the size and nature of your business, the level of control you wish to have, the level of
structure you are ready to manage, and so forth.? First and foremost, what is a sole proprietorship? A
sole proprietorship is a unincorporated business with one manager who pays individual salary assess
on benefits from the business. A few focal points of a sole proprietorship are that the holder settles
on all the choices, they are their own particular supervisor, and any benefits have a place with the
manager. A few impediments are that the manager may do not have the capacity to purchase the
right supplies, do bookkeeping, and so on. In the event that the business loses cash, so does the
manager. Banks can guarantee the individual assets of the holder in the event that it comes down to
it. An alternate inconvenience is that if the manager is sick, the business does not open. Second,
what is an organization? An association is a business association in which two or more people
oversee and work the business. There are two types of organizations, general associations and
restricted associations. In a general organization all accomplices have boundless risk, which implies

Analysis Of Palmer's Concrete Limited Liability Company
Introduction In the analysis of Palmer's Concrete Limited Liability Company. The company seems
to have many opportunities to regain the industrial statues that made them a thriving company prior
to the 2007–2009 economic recession. Floyd Palmer, owner gives the company the most prestigious
advantage, the combination of thirty–year's experience. Although, Floyd is a Baby–Boomer he
understands that hard work today does not come cheap for most his age. For Floyd, learning a
skilled craft was the most important part of becoming successful. Floyd does not hold a college
degree, as he began working with his father immediately after high school. Baker, (2013) published
in the Chicago Tribune, "Why gaining work experience is more important than ... Show more
content on Helpwriting.net ...
However, Palmer's concrete competition derives from larger corporations, which are governed the
laws of an incorporation and international investments. Since Palmers' concrete is an individual
owned and run limited liability company benchmarking doesn't seem rationale enough to
implement. Another, CMT that comes to mind is Enterprise Risk Management (ERM).
Enterprise Risk Management (ERM)
Enterprise Risk Management (ERM). With a second observation ERM offered several rational
alternatives to the CMT, which also could assist, the organization/segment in achieving its Critical
Success Factor (CSF). Since, Palmer's concrete, seemingly displayed a weak Balance Score Card
(BSC) in normal operation analyzed within the company SWOT. ERM could offer an opportunity
for the success of the company, according to Blocher et al., (2013); "ERM is a framework and
process that organizations use to manage the risks that could negatively or positively affect the
company's competitiveness and success" (p.14). However, ERM list several hazards, according to
Blocher et al., (2013) "the operational risk related to customers, products, or employees; and other
strategic risk related to top management decisions about the firm's strategy and implementation
thereof. (p.14).
As Palmer's concrete is registered as a Limited Liability Company

A Company And Limited Liability Company
A sole proprietor is one individual business that is not, like a corporation or limited liability
company (LLCs). It does not have to be registered with the participating states in order to be
existent; conferring to the Internal Revenue Service (IRS); in 2008, more than 22.6 million sole
proprietors existed in the United States (Staff I., N.d.). A sole proprietorship type of business is the
easiest to form, however, it is also the easiest to forget to register with the local government which is
required, acquiring a business license, and paying income taxes (Staff, I. N.d.).
Now in Joe's case, there were numerous steps that were required of Joe, nonetheless, he did not
accomplish them; first, Joe did not apply for a business license, secondly, he did not fill out a tax
return, thirdly, he did not acquire any liability insurance. Joe committed at least seven violations,
according to Section 1102.Title 18, of the United States Code; violations such as federal and state
charges of criminal damage to property, several civil suits, followed by weapons charges either
which could land him 10 to 20 years in prison plus fines (18 U.S. Code Chapter 40 –
IMPORTATION, MANUFACTURE, DISTRIBUTION AND STORAGE OF EXPLOSIVE
MATERIALS. N.d.). A few of the legal difficulties that apply to Joe are negligence, due diligence,
fraud, and duty care. First, there is duty care, which is a misdemeanor law that states, the
responsibility of attention is a lawful commitment which is levied on a

Sole Proprietorship And Limited Liability Company
Sole Proprietorship and Limited Liability Company For the past two years, Acme has been working
out of the owner's garage as a sole proprietorship. Which means there is one entity and there is no
separation of the company and the owner. The sole proprietorship and the owner are one and the
same meaning the business is not taxed but rather it is the owner's income. The sole proprietorship is
the least expensive to form. This type of entity has disadvantages of the owner being liable for all
the debts of the company. Another disadvantage is the owner has to sign all contracts in their name
which makes them personally liable for any legal action that could incur. Since Acme is a sole
proprietorship, if someone is hurt on a business related ... Show more content on Helpwriting.net ...
This structure has a pass–through tax entity meaning the business profits and losses taxes pass
through to the business owner's personal income taxes (Mancuso, 2015). However, it will decrease
the owner's liability. With a firework display show, there are some risks of liability. With the Sole
Proprietorship, the owner could have to go out of business if an issue occurred and he was sued for
liability. Employment Types and Agency Law Acme fireworks owner is looking at the extra
workload that is transpiring through the new contracts with the large retailers. The owner thinks that
new employment would be needed to produce that many shows. The owner really needs to have
gratuitous agents to help with the firework displays. These agents would not seek compensation and
that would really help with his predicament of hiring new employees. However, the work is
hazardous and demanding, it would be better to obtain skilled employees that are loyal and reliable.
The manager of the fireworks has the apparent authority to hire employees for the new workload.
The owner is the principal and he did not specifically tell the manager (agent) to hire new
employees. However, the managers hired the new employees because he assumed that was his role
as a manager. The manager has to take into consideration of the laws involved in hiring new

Limited Liability Company Structure Outline
Abstract This essay outlines the best business structure for a sample company wishing to open a
restaurant. The essay details why this structure is the most advantageous for the company. The
advantages are listed and discussed in detail, explaining how each element applies to business law
and operation for the sample company. One of the most defining elements of a new business is the
business structure it assumes. This will determine the liability of its owners, how the company and
its owners are taxed, how profits and losses are distributed and the company's management
structure. For this reason, it is essential that new companies evaluate each type of business structure
as it applies to their company's needs and chose a structure accordingly. In the instance of Joe and
Jill Smith, a married couple who are opening a restaurant, a limited liability company would be the
ideal structure for their business as it allows the owners to be taxed only once, provides liability
protection for the owners, allows the business to grow while staying family owned and the
paperwork is simple. As a limited liability company, the Smiths will benefit from the pass–through
tax structure unique to this form of organization. According to the Internal Revenue Service, "the
federal government does not recognize an LLC as a classification for federal tax purposes. An LLC
business entity must file a corporation, partnership or sole proprietorship tax return" (Internal
Revenue Service, 2012).

Limited Liability Companies ( Llcs ) Essay
Limited Liability Companies (LLCs) Rationale. The advent of the limited liability company in the
1990's came about primarily to promote small business start–ups by providing substantial asset
protection, simpler rules, and favorable state and local tax treatments (Millon, 2007; Riles &
Whitlock, 2003: Vandervoort, 2004). LLCs are also typically easier and less expensive to form and
manage than a corporation and quickly became the entity of choice (Hopson & Hopson, 2014).
Similarities to corporations. Like corporations, LLCs are separate legal entities, and as with the
shareholders of corporations, the members of LLCs are provided significant asset protection from
creditors and other stakeholders (Riles & Whitlock, 2003) by limiting the liability to the amount of
the capital contribution (Albert, 2015). This shifts the risk of failure and insolvency from the
members to the creditors (Millon, 2007).
Differences from corporations. Many of the differences between LLCs and corporations have been
the crux in the area of litigation, the first being the lack of corporate formalities. Unlike a
corporation, an LLC can be managed by its members or appointed managers and does not require
periodic meetings. Although every state now has LLC legislation (Albert, 2015) which impose
default fiduciary duties, these duties can be modified or eliminated altogether by the members of the
LLC (Raju & Remming, 2012). As opposed to corporations following FASB ASC 105 – Generally

Business Will Be A Limited Liability Company
Executive Summary
Our business will be a Limited Liability Company.
Vision
Our vision is to be one of the top creperies in the New York metropolitan area, to spread the
message of health conscious eating, and to spread our crepe style to as many places as possible.
Mission Statement
Ridiculous Crêpes will be a local café–creperie based in New Rochelle, New York focusing on
sustainable business practices. Our mission is to offer savory and sweet crepes to diverse
communities and surrounding towns, with a wide variety of crepe fillings to satisfy any appetite. We
also strive to use fresh, seasonal, and organic ingredients in our products to promote the health and
well–being of our customers.
Situation Analysis
Environment Issues ... Show more content on Helpwriting.net ...
The lower the unemployment rate is, the higher the labor cost will be. However, low unemployment
may also increase discretionary consumer spending which will lead to sufficient sales to keep the
business going.
In New Rochelle the tax rate is about 7.38% which is higher than the average rate in the U.S. Higher
tax rates may cause low wages and higher prices.
Technological Environment
The technological advances will have a minimal impact on Ridiculous Crepes, because the food
products will not be complex. However, the use of technology will enable and enhance most of the
company's operations. For example, the use of internet will not only provide an additional venue for
sales, but it will also facilitate the communication with manufacturers' agents and channel members,
the internet will also expedite the process of delivery or orders.
Political and legal Environment
We must have the license and permit to operate our business. Since our creperie is based on
sustainable business practices, we must be certified by the Green Business Bureau of New York. In
addition, because Ridiculous Crepes is advertised to be healthy and made with organic ingredients,

all our products must be organic USDA Certified Ingredients. Health laws require to display calorie
data on our menu.
There are numerous laws that are specific to New York of which we must always be aware. Any
future claims

Disadvantages Of A Limited Liability Company
There are several crucial factors to consider when starting a business. First, one must consider
choose the type of company they want to start, for example, a limited liability company. A limited
liability company is an unicorporated method of doing business that gives its members limited
liability and permits them to actively take part in management of the company. The second factor to
consider is the state in which the business will be registered. Different states have different
requirements for forming a limited liability company. Additionally, the advantages and
disadvantages of forming a limited liability company vary across different states. This paper will
discuss the requirements for forming a limited liability company in the state ... Show more content
on Helpwriting.net ...
First, members of the company have limited liability (Maxfield, 2011). This means that a creditor
may not use a member's personal assets to offset a debt owed by the company. Second, Wyoming
gives members of a limited liability company a tax advantage. This occurs because members only
pay tax on their share of profits, thus avoiding double taxation. The third advantage of forming a
limited liability company in Wyoming is that the state does not limit the number of investors. This is
as opposed to an "S" corporation where the number of investors is limited to 35 (Maxfield, 2011).
Additionally, forming a limited liability company in Wyoming is advantageous because there is no
general partner. This is as opposed to limited partnerships where the manager has unlimited personal
liability for the company's debts and has to maintain a one percent interest in the entity (Maxfield,
2011). Limited liability companies allow for flexibility in the management and limits liability to a
members share in the investment.
Despite these advantages, there are some disadvantages to forming a limited liability company in
Wyoming. First, there is limited transfer of interest. This means that a member cannot transfer their
shares unless all members vote to allow the transfer. Second, limited liability companies in
Wyoming are relatively expensive to form and operate. They have some complicated legal
requirements

Lit1 Task 310.1.2-01-06 Essay examples
LIT1 Task 310.1.2–01–06
Part A
Sole Proprietorship –
LIABILITY – There is no separation between the individual and the business. As the owner and
operator of a sole proprietorship, all of the profit and loss is the personal responsibility of the
business owner creating unlimited liability.
INCOME TAXES – As a sole proprietor all business income or losses must be reported as personal
income tax. The business itself is not taxed separately.
LONGEVITY/CONTINUITY – The sole proprietorship is defunct once the business owner dies, or
quits.
CONTROL – The business is controlled by the single business owner. The control cannot be passed
to another person.
PROFIT RETENTION – All profits are kept by the business owner.
... Show more content on Helpwriting.net ...
LONGEVITY– A C–corporation life is potentially unlimited. The C–corp company could exist if it
can continue to make a profit and cover all of the debt. If a shareholder dies or leaves the company it
will not automatically lead to the dissolving of the business. The shareholders stakes are transferred
to another party.
CONTROL– Shareholders do not typically manage the company's business. Instead a board of
directors is elected. The board of directors has direct control over the company. A board member can
also be a shareholder.
PROFIT RETENTION– The company's profit can be used in two ways. The profit can either be
invested in the business or it will be paid out to the shareholders as dividends. Dividends are based
upon on the shareholders stake.
LOCATION– Location is irrelevant for the C–Corp since corporate tax is the same for all states.
CONVENIENCE/BURDEN – The major convenience of a C–corporation is how easily it can obtain
additional funds through issuing additional stocks. C–Corp's are burdened by the double taxation of
both the corporation itself and dividends paid to the shareholders.
S–Corporation –
LIABILITY– The same as a C–corporation, shareholders of S–corporation have limited liability. In
the case of bankruptcy they only lose their shares of the corporation.
INCOME TAXES– S–corp differs from C–corp taxation; taxes are passed through to the
shareholders only. The company itself does not pay taxes.

The Concepts Of Separate Personality And Limited Liability...
This essay will explain the concepts of separate personality and limited liability and their
significance in company law. The principle of separate personality is defined in the Companies Act
2006(CA) ; "subscribers to the memorandum, together with such other persons as may from time to
time become members of the company are a body corporate by the name contained in
memorandum." This essentially means that a company is a separate legal personality to its members
and therefore can itself be sued and enter into contracts. This theory was birthed into company law
through the case of Salomon v Salomon and Co LTD 1872. This case involved a company entering
liquidation and the unsecured creditors not being able to claim assets to compensate them. The issue
in this case was whether Mr Salomon owed the money or the company did. In the end, the House of
Lords held that the company was not an agent of Mr Salomon and so the debts were that of the
company thus creating the "corporate Veil" . It seems understandable that a business should exist as
a separate legal personality as it would be impossible for an individual's motives and goals to be
perfectly in line with that of the company as is demonstrated above in Salomon. Following this
theory the idea that the rights and duties of a company are not that of its members and shareholders
as demonstrated in the case of Lee v Lee Air Farming . The principle of separate personality has had
many implications on company law since the

Describe The Basic Features That Distinguish The Four...
gfc Chapter Six
Business Formation: Choosing the Form that Fits
Review Questions
Describe the basic features that distinguish the four basic forms of business ownership: sole
proprietorships, general partnerships, C corporations, and limited liability companies.
Sole propietorship. is a business that is owned, and usually managed, by a single individual.
earnings are treated just like the owners income; likewise, any debts the comany incurs are
considered to be the owners personal debts.
General Partnerships. Voluntary agreement under which two or more people act as co–workers of a
businees profit. each partner has the rigth to participate in the companys managment and share in
profits, it also has unlimited liability for any debts the company incurs.
Corporation. Business entity created by filing a form with the appropiate state agency. a corporation
is considered to be legal entity that is separate and distinct from its owners. the owners have limited
liability, they are not personally responsible for the debts and obligations of their company. Limited
Liability Company. (LLC) . a form of business ownweship that offers both limited liability to its
owners and flexible tax treatment.
Why do many entrepreneurs initially set up their businesses as sole proprietorships? Why do many
successful entrepreneurs eventually decide to convert their sole proprietorship to some other form of
ownership such as a corporation or LLC?
It's the easiest and

Benefits Of A Limited Liability Company
A Limited Liability Company (LLC) is often regarded as a hybrid business structure: it mergers the
protection of a corporation with the tax benefits and relative administrative simplicity of a
partnership. For these reasons, it is considered an ideal business form for most small to mid–sized
businesses with multiple owners.
When starting a business, partners may choose to create an LLC rather than a standard partnership,
thereby obtaining the substantial benefits provided by an LLC. In this structure, the partnership
agreement terms are essentially couched in the LLC Operating Agreement and govern the operation
of the entity. An LLC may be directly managed by all its members (member–managed LLC) or
selected members appointed by the members (manager–managed LLC). An LLC managed by its
members operates substantially like a partnership. The major benefits of using an LLC for a
partnership include:
Limited liability. An LLC shields its members from incurring liability for the business debts and
obligations of the other members. The limited liability protection afforded by an LLC is a significant
advantage over a general a partnership structure, which does not shield its partners from the
liabilities of fellow partners in the event of a partner's default or exit from the partnership
Tax treatment. The IRS default rule stipulates that an LLC report taxes in the same manner as a
partnership. Alternatively, the IRS allows LLCs to report income as a corporation, but this election

Case Analysis : Dixielands Glory, Limited Liability Company
Case Analysis: DixieLands Glory, Limited Liability Company Overview of Company Herein will
begin with an overview and introduction from personal knowledge of DixieLands Glory, LLC; a
small family owned and operated business for the purpose of owning and managing rental
properties. The company was initially operated as Warf's Rentals; in 2003 the business was renamed
and incorporated to become DixieLands Glory, LLC. The business is operated from a small office
located in the family's home, which is located in Linden, Tennessee. DixieLands Glory owns,
operate, and manage approximately eighty–five rental units ranging from single–family homes to 4–
plexes and mobile home parks. The properties that the company owns are mostly located in the
states of Tennessee and Alabama. Of this, about 50 percent are located in the family's hometown of
Linden, Tennessee, with the remainder being located in two other Tennessee counties, and Decatur,
Alabama. Ownership The owners of DixieLands Glory are a husband and wife team, Sam and
Diane, with their two children who are 19 and 21 years old. The couple started the business when
their children were very young as a part time operation. In 2001, Sam fell off a roof and broke his
back prohibiting him from continuing in his prior employment of building custom houses. This
spurred Sam into creating a living for his family by building a rental business that would be able to
sustain his family's needs. In the course of a few months, Sam took

What Form Of Business Configuration ( Franchise Or Limited...
Research question: What form of business configuration (Franchise or Limited Liability Company –
LLC) is more effective, and which type will be more successful in this situation?
Executive Summary
There are several different aspects of Franchises and LLCs discussed including: how Franchises and
Private Limited Companies are formed, taxation, profit distribution etc. I have assessed which form
of business is more likely to be successful. I have also addressed the three sectors of production;
Primary, Secondary and Tertiary. My analysis has led me to the conclusion that the two business
models each have pros and cons and that the specific circumstances will determine which is most
suitable.
Issue
I have chosen to examine, in detail, a ... Show more content on Helpwriting.net ...
Subway operates in the Tertiary sector. A Franchisee has the right, granted by the Franchisor, to offer
the Franchisor's products or services under guidelines provided by the Franchisor, at a certain
location for a concrete period of time.
In a franchise, the Franchisor sells the rights to sell its proprietary good/service to third parties or
Franchisees. Both of the parties then sign a franchise agreement, which lasts for any agreed period,
but generally between, 5 and 30 years. Once the franchise commences to function the Franchisee
pays a royalty payment has to the franchisor on a monthly, quarterly or annually basis. The
franchisor does not have liability and is not responsible for any activity in the franchisees business
and does not have any employment liability, and are not responsible for any of the on job injuries in
the franchisees business.
The Al Habtoor Group is a private Limited company and is a Limited liability company, it engages
in the secondary sector. All of the members have Limited liability and can only loose their
investment in the business. This business can have a maximum of 50 shareholders, and it requires
the acquiescent of all shareholders to sell their shares.
The business set up
To set up a Limited Liability company you must register with Companies house, also known as
"Incorporation". To set up a Limited Liability company you need a company name (there are many
rules of what the company name can and can't include). It is also a

Ibjectages And Disadvantages Of Being A Limited Liability...
Advantages of partnerships:
More capital can be raised because more people (partners) are investing in the business. Roles and
responsibilities are divided between the partners, which makes it not one–man job. Risks and loses
are shared between the partners. There is no obligation to make the financial records publicly
available unless the partnership has LLP status (Limited Liability Partnership).
Disadvantages of partnerships:
Partners are jointly liable to all the businesses' losses and debts unless they have LLP status. The
decision–making process will be slow, because all partners have to consent. Partnerships need a
solicitor to take care of the legal agreements and issues, which is associated with legal costs.
3. Franchises:
It is ... Show more content on Helpwriting.net ...
A limited company continues to exist regardless of the identity of shareholders. It benefits from the
corporation tax law as the taxes are paid at lower rates.
Disadvantages of being a limited liability company:
A limited liability company has to publish annual financial statements. The financial statements
have to meet the accounting standards. The accounts of a large limited company have to be audited
to ensure they comply with the legal requirements.
Trusts
Trusts are unincorporated and have no legal entity. They are formed to hold assets on behalf of an
individual or an organization and control how to be used. (Gov.uk, 2016)
An example is a trust issued in behalf of a deceased individual for the children of the deceased.
NON–profit organizations:
These are organization mainly formed to provide services or goods to the general public or to its
members. However, they can make profit but it is not the primary goal.
Non–profit organizations can be one of the following:
a) Charities: exist to provide help to the needy
b) Public sector organizations: exist to serve the

Limited Liability in Group Companies
Corporate groups can be defined as a company structure where several companies are
interconnected through contract shareholding or as Dine says, "By interlocking dictatorships." In
these structure holding companies usually have control and influence over subsidiaries. Limited
liability on the other hand, is the logical consequence of the existence of a separate legal entity or
generally, the concept simply means that since the company is different from the shareholders, the
members are only liable for the amount unpaid or their shares and not for the debts of the company
When limited liability is easily and cheaply available can be explained as removing unnecessary
legal bars which can be an inhibition to progress of economic activity ... Show more content on
Helpwriting.net ...
They include It facilitates easy access to credit: Limited liability permits firms to isolate different
lines of business for the purpose of obtaining credit. This allows companies to extend their business
gambles to other legal forms largely other companies in different degrees and forms through share
buyouts or incorporation of subsidiaries. Secondly, limited liability minimizes risks for the
investors: Since modern governments want to see enterprise flourish, they attach great value to
business. However because business involves potential risks, limited liability comes in as a
motivation in case of failure and potentially attracts as many people into business through becoming
a contracting tool and financing device and investors are certain that their personal assets are safe as
the rule is kind of security. Furthermore, limited liability increases the value of assets: When
creditors know the subsidiary they are dealing with, it allows specific stakeholders to closely
monitor where their interests are most vested. It brings about accountability, transparency and
quality management as the directors are cautious that their activities will get to the public domain
leading to quality service with a

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