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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
50
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.
Which is NOT an advantage of LLC?
选项
A、Limited liability
B、Avoiding double taxation
C、Easier access to stock market
D、Less-rigid profit allocation
答案
C
解析
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