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Lamond Manufacturing Case Study

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At your request, I have evaluated your concerns and have reviewed your options regarding a business organization change for Lamond Manufacturing. The types of business organizations I considered during my evaluation were a sole proprietorship, which provides autonomy and ease in creation, but is risky because of unlimited liability. The general partnership, which allows owners the opportunity to do business together, however, it carries the same unlimited liability as the sole proprietorship. The C-corporation provides limited liability for its owners, although, it can be problematic to manage, with numerous requirements and ongoing management. The S-corporation, a corporation similar to C-corporation, however, after meeting the eligibility criteria, the S-corporation can elect to be treated as a partnership for tax purposes. And the limited liability company, which provides the most flexible …show more content…
With this in mind, members should take additional precautions and care to interact with LLCs at arm’s length, because of the risk of piercing the veil that exists with LLCs. However, the members are able to enjoy the limited liability risk.
Limited liability companies also feature the tax benefits of a general partnership. Since the limited liability company is a non-taxable entity, taxation of the LLC is flexible. Essentially, every tax year the LLC can choose to be taxed as a general partnership or a sole proprietorship.
The limited liability company, type of business organization is well suited for a wide range of business operations. It will provide the most flexible options for doing business, numerous choices for taxation planning, and limited liability for the owners. And is easily converted to a corporation if Lamond Manufacturing chooses to become a publicly traded

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