Since there is no written document of the partnership past two years there might be chance of friction between the partners. I Barbara, Hlen and Maureen have a written document with all the valid points of their partnership it would be easy for them to avoid any kind of confusion in the future, wich might lead to conflict in partnership. A they are going to expand their business and employee two people it is advised to have everything in written. Wen Barbara, Hlen and Maureen are planning to make business a limited liability company or LLC it is necessary for them to know about various types of LLCs (GCSE Business Studies, 2004).
Kowing about these would help them understand their business better and make them aware their type of business. Blow are various types of LLCs: .General Partnership: I this type of business there is more than one partner involved. I this type of partnership all the co-owners are involved the debts, bsiness transactions and taxes incurred by the business1. Cse In Point: I the famous case of Ostolaza and José Diaz vs.
Cuntrywide Home Loans, Ic. ,which was represented by Anthony Falcone took over all their mortgages about their new home, wich Ostolaza-Diaz had a partnership. Wile taking over it was promised that the new payment would be much lower than that of the original repayment. Wen Ostolaza-Diaz filed a suit the trial dismissed it and the appellate court had upheld the dismissal on the ground that the duo was given an opportunity to read the document clearly but they had not done the same. .Limited Tis type of partnership is more or less similar to that of general partnership but in this partnership one partner should have the full liability of the business structure and another would be accountable for limited amount of liabilities.
.Family Limited Partnership: Tis type of partnership reflects the structure of limited partnership but the difference is that the partners are all family members. Mstly it is seen that when a family starts a partnership business they form it as a general or limited partnership firm2. Cse In Point: I famous case of Estate of Rector v.
Cmmissioner, te limited partnership that Mrs. Rctor formed in December 1998 was learned by her son John. Se had another son named Frederick. I March 199 according to the clause of the agreement $8. 8million of cash and marketable securities were transferred to the limited...
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