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Wednesday, November 19, 2008

Berkley, and the current one has its own unique features. An employees pension, as well as any other savings or retirement fund, is also considered a liability for a company. Something that holds one back a handicap. There is no cost to the homeowner for this coverage.

Liability insurance exists for just such a purpose. Liability is not always the result of an intentionally damaging act or of some proven fault like negligence. The state of being liable liability to disease. Investopedia on the balance sheet, liabilities includeloans, accounts payable, mortgages, deferred revenues, and accrued expenses. Liability insurance pays an individual or a business for liabilities that result from unforeseen situations. Over time, the resulting legal fictions became increasingly strained. Liability costs have also exploded for those who still buy liability insurance. Please direct questions or comments about the website towebmastereconlib.

For example, the unpaid value of a mortgage or outstanding money owed to suppliers would be considered a liability. Comprehensive legal term that describes the condition of being actually or potentially subject to a legal obligation. You now have complete liability protection for all of your card transactions that take place on the Visa system. Investopedia Cite This Source Share A legal debt or obligation estimated via accrual accounting. Current liabilities are debts payable over a longer period. Strict liability often applies to vehicular traffic offenses. In relation to assets and capital. Joint liability is an obligation for which more than one person is responsible. Claims arising from activities of any participant in any game, contest, race or sporting event, including practice, are also excluded. These increases cannot be accounted for by greater product riskiness.

They can also make transactions between businesses more efficient. This includes concession stands, dances, banquets, parties, auctions, raffles, picnics and meetings, to name just a few. For example, the outstanding money that a company owes to its suppliers would be considered a liability. Additionally, claims involving real estate may also take the form of an implied warranty of habitability. When you have an accident, you may have many things on your mind besides legal representation. Responsabilidad, inconveniente, estorbo, obligaciones, pasivo idiomslimited liability companynbspnbspnbspnbspsociedad de responsabilidad limitadaSvenska Swedishn. Something disadvantageous His lack of education is his biggest liability. You have exercised reasonable care in safeguarding your card.

While a student at Harvard, he spent two summers working for Ralph Nader.

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Wednesday, November 19, 2008

Pros and Cons of Being a Limited Liability Company
By: Richard Chapo

Limited liability companies are the popular new choice for business start-ups. The “LLC” has only been in existence for roughly 26 years and there are some definite pros and cons.

A limited liability company is a creature of state law. Prior to the late 1970s, it had never been a choice for businesses because it didn’t exist. In the late 1970s, the State of Wyoming passed an act creating it. It took another ten years or so before other states caught on. Once they did, the mad rush was on to pass legislation allowing for the creation of LLCs in nearly all states. The world of business entities had been changed forever.

The LLC is a business entity designed to help small business. As a result, most of the positive reasons for using it are catered to such business. In a general view, the entity is heavily favored because it provides liability protection from lawsuit judgments and business debts just like a corporation. On the other hand, the entity does not carry the legal requirements for running it like a corporation. Few board meetings are required and the administration of minutes and such is extremely simple. For small businesses, this cannot be understated.

Another significant positive of the limited liability company has to do with taxes. The IRS made a landmark decision in the late 80s to allow the LLC to be taxed like a partnership. This means the business owners can elect to have the finances of the business pass through to their personal returns. Doing so avoids the double taxation situation corporations are often criticized for.

The LLC is a great vehicle for small businesses, but there are some important cons associated with it that you must understand. First and foremost is the lack of history in relation to the entity. While it is supposed to provide the protection of a corporation from liability, this has not entirely been flushed out in the courts. So far, the decisions seem to support the idea, but it will be another 20 years at least until we can all be sure. Courts have a history of interpreting laws differently than the legislature wrote them.

Another con is clearly the fact that an LLC cannot be taken public. If you start a business and it takes off, the company cannot be listed on any stock exchange for a basic reason. To trade stock on an exchange, there has to be…well, stock. A limited liability company does not have stock. Instead, the owners are called “members” and own membership interest like you would see in a partnership.

Finally, there are a certain number of states that limit the use of the limited liability company. States like California, for example, do not let professionals use the entity. Professionals can be defined surprisingly broadly. While doctors, lawyers and accounts seem obvious, certain states also will restrict real estate agents, consultants and other professions. Ironically, the states will usually approve the filing, so you don’t know there is a problem till someone sues you.

At the end of the day, an LLC is often a great vehicle for small businesses. Just make sure you understand the limits.

Richard A. Chapo is a San Diego business lawyer providing services for limited liability company formation in California.

About The Author:

Source: http://www.articlealley.com/article_127734_18.html Occupation: Attorney Richard A. Chapo is a San Diego business lawyer with San Diego Business Law Firm providing legal services and legal advice for businesses. Visit SanDiegoBusinessLawFirm.com to read business law articles. http://www.sandiegobusinesslawfirm.com