Corporate Forms Within The United States Essay

1042 Words Feb 12th, 2016 5 Pages
The idea of creating a venture is a tantalizing thought, growing, succeeding, and more importantly making an impact. The plight of most entrepreneurs and future entrepreneurs is that they often think ahead of themselves and get to enthralled with their venture that they forget to lay the foundations of their organization. When it comes to corporate forms, entrepreneurs with little knowledge to no knowledge of the topic tend to sidestep this process until legally required. It even becomes more complex when an organization goes beyond its territories and pursues the international market. This paper shall analyze the key differences and similarities between corporate forms within the United States, Unincorporated Voluntary Association (UVA) and Limited Liability Companies (LLC) vis-à-vis its counterparts in Germany.

In 2013, it is approximated that 543,000 new businesses get started each month in the US (Nazar, 2013) and with all these new businesses pouring in, comes a lot of registration or “unregistration” to governing bodies. A good majority of these new corporations would potentially register as Limited Liability Companies (LLC) and often the reasoning revolves around the flexibility that it gives to its proprietor or proprietors.

The advantages of becoming an LLC are apparent regarding the taxation policy that is implemented upon this type of organization, it allows the incorporators to choose what type of tax regime it would be bracketed in, which ranges from being…

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