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Case Study: Libby King With Elevated Equities

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SYNOPSIS: Question 3: Read BTN 1–8 on page 47. My assignment was to interview a local business owner and I chose to interview Libby King with Elevated Equities, a business my family owns. I was instructed to ask what the main operating activities are, what form of organization the business is, along with why the owner chose the type of organization for the advantages and disadvantages. Elevated Equities has Christian values and I was also instructed to ask how the owner’s faith changes how they run the business. Elevated Equities is a mortgage lending company specializing in commercial real estate. The company lends on commercial raw land, apartments, retail strip centers, senior assisted living facilities, office buildings, and other types of commercial properties. Elevated Equities operates as a partnership under a Limited Liability Company, also known as LLC. Fundamental Accounting Principles says, a LLC “offers the limited liability of a corporation and the tax treatment of a partnership …show more content…

“Unlike sole proprietors and partnerships, corporations pay income tax on their profits. In some cases, corporations are taxed twice - first, when the company makes a profit, and again when dividends are paid to shareholders on their personal tax returns (The U.S. Small Business Administration, n.d.).” The second special advantage is the limited liability that a LLC offers as compared to a general partnership. Under a general partnership, the partners can be held personally liable for any debts and legal actions against the company (The U.S. Small Business Administration, n.d.). However, under a LLC, the members are protected from some, if not all, liability for debts and legal actions of the company. Elevated Equities did not feel there were any disadvantages in their use of the LLC operating

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