Читать книгу Reading Financial Reports For Dummies - Lita Epstein - Страница 38

A partnership or sole proprietorship can limit its liability by using an entity called a limited liability company, or LLC. First established in the U.S. in 1977 in the state of Wyoming, LLCs didn't become popular until the mid-1990s, when most states approved them.

This business form actually falls somewhere between a corporation and a partnership or sole proprietorship in terms of protection by the law. Because LLCs are state entities, any legal protections offered to the owners of an LLC are dependent on the laws of the state where it's established. In most states, LLC owners get the same legal protection from lawsuits as the federal law provides to corporations, but unlike the federal laws, these protections still need to be fully tested in state courts. If you choose to establish an LLC, be sure to discuss with your attorney state court cases related to liability protections to see if there are any red flags in your state.

Reporting requirements for LLCs aren't as strict as they are for a corporation, but many partnerships do decide to have their books audited to satisfy all the partners that the financial information is being kept accurately and within internal control procedures determined by the partners.