In this business structure, the company has limited liability formation, which means that company members are not liable on personal level for any of the liabilities or debts of the company. There is no upper limit to have various members for the company and in such business formation, the members make participation in every aspect of the business, but still they enjoy the luxury of limited liability on their shoulders. This structure is hybrid in nature taking some aspects from corporation as well as partnership business formations. The first benefit of the LLC is flexibility of taxes along with having less paperwork to form the legal requirements of the company. The members are protected from any kind of liability on behalf of the company, which is a plus for the members. However, the negative part of LLC is that each member of the company will have to pay taxes on their own profits, and company will not pay any corporate taxes. Moreover, there can be confusion about the jurisdiction of the members along with set rules (Martinez, 2018). IBM & Sony are one of the major examples of a limited liability company.

References of Limited Liability Company of Three Common Formations of the Companies

Korchak, Johnathan. 2017. Advantages and disadvantages of a partnership business. Accessed October 28, 2018. https://www.informdirect.co.uk/business-management/partnership-business-advantages-and-disadvantages/.

Martinez, Rowena. 2018. Limited liability company: Advantages and disadvantages. Accessed October 28, 2018. http://www.versiondaily.com/limited-liability-company-advantages-disadvantages/.

Rogers, Karen. 2018. Types of Business Formations. Accessed October 28, 2018. https://smallbusiness.chron.com/types-business-formations-74118.html.

The New York Times. 2007. Advantages and Disadvantages of Sole Proprietorships. Accessed October 28, 2018. https://archive.nytimes.com/www.nytimes.com/allbusiness/AB4113314_primary.html?mcubz=0.