Starting your San Diego business as a Sole Proprietor or General Partnership are some of the easiest business entities to form. However, both of these business entities come with a serious drawback – being that the business owner has no protection from liabilities that arise from the operations of the business. This means that if you are sued, or the business goes into debt, the business owner can be held personally liable for those debts. There are different types of partnerships however, including limited partnerships and limited liability partnerships that can offer variable levels of liability protection.
Corporations are probably the most well-known of the business entities, as they provide limited liability to shareholders, easy access to raising capital through investors, are the only business entity that can go public through an IPO, and have a rigid management structure allowing shareholders to delegate the management of the corporation to directors and officers.
A limited liability partnership (LLP) is available as a business entity to only certain licensed professionals, which are public accountants, attorneys, and architects. LLPs are a good alternative to general partnerships, as an LLP provides extended protection from liability that general partnerships do not. This article provides a brief overview of the general structuring and operations of a LLP.
If you are looking to start a business, chances are that you have heard of one of the following business entities. This post will cover general details about sole proprietorships, partnerships, limited liability partnerships, limited liability companies, and corporations.