Business Entity Matrix Paper Essay Example | Topics and Well Written Essays - 750 words

Business Entity Matrix Paper - Essay Example Another reason of choosing LLP relates with my inherited home, as LLP protects personal assets of partners in a way that wrongful actions of my friend partners will not cause loss of my inherited place, and thus, it was better to choose limited liability partnership, as I will be responsible for only my unlawful acts and vice versa. Another significant advantage of choosing LLP is its mode of consistence, as any alterations in the number of partners will not affect my benefits, as well as liabilities, unlike limited partnerships (Mancuso, 2007).  In this way, limited liability partnership seemed a shielded business structure with less exposure to particular liabilities. Although LLP is an innovative structure, study indicated few problems related to legal and tax issues (Daily, 2008); however, it appeared a better option during the decision. Regarding other liabilities, brief analysis specified that although LLP protects liability of partners; however, some states in the country do not offer such restrictions, and thus, all the partners may confront losses. Moreover, detail analysis and comparison with other forms of business structures showed that I would be less secure in LLP, as compared with financial liabilities of a shareholder in a corporation. Still, I chose limited liability partnership after analyzing different aspects, benefits, and drawbacks of different business entities.Besides analysis of business structures, employees or workforce play a major role in the success and failure of any business entity.