Business Entities

BUSINESS ENTITIES PAPER

KILPATRICK MCGOLLIE

LAW/421

DAVID FELDHEIM, JD

DECEMBER 23, 2013

The sports bar and restaurant venture that Lou and Jose plan to embark upon with Miriam as a silent partner; where patrons can socialize while eating, drinking and watching sporting events on large screen televisions. The business entity that best serves this effort would be a Limited Liability Company (LLC). A limited liability company (LLC) is a flexible form of enterprise that blends elements of partnership and corporate structures. An LLC is not a corporation; it is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions. LLC’s do not need to be organized for profit.[citation needed] Certain types of businesses that provide professional services requiring a state professional license, such as legal or medical services, may not form an LLC but use a very similar form called a Professional Limited Liability Company (PLLC). A Limited Liability Company (LLC) is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation, and it is well-suited for companies with a single owner. With Lou and Jose being a LLC they are essentially separating their personal assets from their business assets and if the business were to fail and not...