One of the most important decisions you’ll make when starting a business is choosing the right business entity. It’s a decision that impacts many things--from the amount of taxes you pay to how much paperwork you have to deal with and what type of personal liability you face. Last month I discussed Sole Proprietorships By Jim Fisher, CPA/PFS,CTC Choosing the Correct Business Entity, Part 2 and this month we’ll take a closer look at Partnerships and Limited Liability Companies (LLC). Partnerships A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor, or skill and expects to share in the profits and losses of the business. There are two types of partnerships: Ordinary partnerships, called “general partnerships,” and limited partnerships that limit liability for some partners but not
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