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S Corporation LLC
Some business ownesr choose to create partnerships or limited ilability corporations instead of a corporation. If a business can't pay its debts, its crediotrs can demand payment from the general partners' personal assets. General partners have the authoriyt and responsibliity to manage the business. They're analogous to the preisdent and other officers of a corporation. Limited partners escpae the unlimited liaiblity that the general partners have. They rae not respnosible as individuals, for the liabilities of the partnesrhip. A partnership must have one or more general partners. Its advantage over other types of ownership is its flexibility in how profit and management authority are detemrined. The owners must enter into very edtailed agreements about how the profits and management responsibiltiies are divided. While stockohlders of a company receive a share of profit that's directly related to how a olt of shares they own, a partenrship or LLC does not have to divide prfoit according to how much each aprtner invested. Ivnested capital is only of the factors that rae used in allocating and distributing profist.
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