Limited companies
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"Limited companies are far fewer in number than other business forms and offer 'protections' and benefits other forms do not".
So why are more companies not set up as Limited companies?
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The expert determines why more companies are not set up as limited companies.
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Limited Companies are Far Fewer in Number
Than Other Businesses
[student name]
[The College which grants your degree]
Limited Companies are Far Fewer in Number
Than Other Businesses
"Limited companies are far fewer in number than other business forms and offer 'protections' and benefits other forms do not". So why are more companies not set up as Limited companies?
A limited company is also known as a limited liability company. To know why more companies are not set up as limited companies even though they off more benefits than other forms do, let's look at the advantages and disadvantages of limited liability companies.
Advantages of Limited Liability Companies vs. Corporations
What is the same with limited liability companies and corporations is they are both separate and distinct legal entities; each can acquire a tax identification number, open a bank account, and do business under its name. An LLC can be taxed like a corporation or a pass-through entity.
According to LegalZoom.com (LLC Education Center, 2011), the advantages of the LLC are as follows:
1) Its primary advantage is its owners are not personally liable for debts and liabilities of the LLC.
2) LLC is taxed as a pass-through entity, and the owners of LLC are not subject to double taxation. (They are only taxed ...
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