Business Law Report Essay Example | Topics and Well Written Essays - 1500 words

Business Law Report - Essay Example More importantly, business laws do not only act as regulations on carrying out business activities but also are useful for the protection of individual entities and persons involved. For instance, business laws are crucial in partnerships due to the governance of relations between the individual parties in play. To facilitate comprehension, a more specific evaluation of the role of business law in limited liability companies (LLC) is in order. Basically, LLCs are legally formed business entities with provisions of limited liability to its members. The recent years have seen increased venturing into LLC across the globe arguably due to the extensive benefits accrued to their formation that impact directly on the owners. LLCs are allowed to choose their preferred tax regime such as either a sole proprietorship or a partnership. This implies that an LLC may be formed by a single individual or through combination of multiple members thereby creating a partnership. However, tax provisions vary across different regions implying that determination of qualification is carried out based on the laws governing LLCs in respective regions. Nonetheless, this provision is increases flexibility of LLCs making giving them some advantage over other business forms. Such an LLC may opt to be taxed as partnerships rather than a corporation to enjoy the benefits accrued to such entities. For example, members’ distributive share of incom e, gain, and loss among other sharable prospects may be done through other approaches apart from through determination of ownership percentage of individual members provided they are within the confines of laws in Treasury Regulation. Moreover, members of an LLC have limited liability implying that they are protected from liabilities of the LLC. However, this benefit is dependent on the state shield law with some providing for some of the liability rather than the entire liability. Additionally, LLC are arguably better compared