How are LLC\'s different from Sole Proprietorships and Partnerships? Why have LL

Question

How are LLC's different from Sole Proprietorships and Partnerships?
Why have LLC's become such a popular form for small business's?
Why have LLC's become so popular for politicians? How are LLC's different from Sole Proprietorships and Partnerships?
Why have LLC's become such a popular form for small business's?
Why have LLC's become so popular for politicians? How are LLC's different from Sole Proprietorships and Partnerships?
Why have LLC's become such a popular form for small business's?
Why have LLC's become so popular for politicians?

Explanation / Answer

ANS 1-

LLC stands for limited liability companyas it is explained by the name itself in this type of company the liabliity of the members are limited.

The   difference between the LLC & in sole proprietorship and partnership is that :-

In LLC the unlimited members can come together and can run the business by investing the capital.But in case of soleproprietorship only one member can run the business,and in partnership the number of members are limited to maximum 20.

ANS 2-

The LLC has become a popular form of small business because the formalities required to form and run a LLC is very less.And in such less formalities the liability of each member is limited ,the LLC can raise funds easily asmost of the investors avoid investing in sole proprietorship or in partnership firms.Due to unlimited members the burden is distributed among different members.

Ans 3-

LLC’s have become popular for politicians as anybody can invest their money in the LLC by being a member so it is easy to convert black money into white easily with the help of LLC. And in LLC the members who have earned profit are liable to pay tax only once .as compared to other business form the lax liability of the firm and the members are calculated separately.

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