Question

Heather is seeking to start a business. She is concerned with having enough money to start the business, even after taking a loan from the bank. She is willing to take on partners but she still wants to have control over most aspects of the company. Which form of business organization would be best to set up?

Answer 1

She would need to form an LLC.

Answer 2

The correct answer is:

Partnership.

A Partnership is a voluntary association of two or more persons to manage a business enterprise sharing its profits or losses. Some partnerships may include people who work in the business, while others include partners with limited participation and limited liability for the debts and lawsuits faced by the business.

In the United States the limited-liability company (LLC), arose as a response to the demand for a combination of corporate and partnership structure.