Business entity Essay Example | Topics and Well Written Essays - 250 words

Business entity - Essay ExampleThe particular partnership is not subject to federal income tax.The contain partnership allows the acceptance of two partners who contribute a different fund amount and a trinity partner who only contributes his or her services in lieu of capital, considering each of the owners has a spouse and bounteous children. Normally, the special partners contribution to the partnership is lower than the general partners contributions. The limited partners are command from participating in the management decisions of the partnership. Only general partners are allowed to betray management decisions (Clifford, 2008).In footing of limited partnerships liability, the creditors stool get the general partners family assets to pay for the liabilities of the limited partnership. On the other hand, the creditors cannot get the limited partners family assets to pay for the liabilities of the limited partnerships liabilities (Clifford, 2008).The best form of busines s for a small business is limited partnership. For a limited partnership, a small business can easily grow to become a big business when the virtually opportune moment comes. As the business profits continue, all the limited partnerships partners can increase the store size, sell more product types, or up a new limb in another locality (Clifford, 2008).Analyzing the above information, many persons want to form a limited partnership. The limited partnership is tax exempt. The creditors can only get the general partners assets. Only the general partners can make partnership decisions. Convincingly, the limited partnership works best in the above business