Llc vs Llp

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The Roles of Limited Liability Partnerships and Corporations

The majority of large companies which we purchase goods and services from are established as a limited liability corporation, corporation or limited liability partnership. Corporations were established in an effort to protect business owners, and have now turned into many complex variations (ehow).
A limited liability company is not a partnership or a corporation, it is a hybrid. The owners of a limited liability company are shielded from the personal liability of the corporation, and all profits and losses pass directly to the owner’s without taxation of the entity. In order to form a limited liability company, the articles of organization must file with the state and pay the associated fees (uslegal, Limited Liability Corporation Law & Legal Definition). A limited liability company is owned by its members. If the limited liability company uses managers, the members will more closely resemble stakeholders as they do not make management decisions. If the LLC does not use managers, then the members will be more like partners as they will have a direct say in the decision making of the company. There can be an unlimited number of owners in an LLC. Limited liability corporations are not required to hold annual meetings and keep minutes as corporations are. An LLC has a limited lifespan, and can be dissolved due to death or withdrawal of a member (uslegal, Limited Liability Corporation Law & Legal Definition).
A limited liability partnership is a general partnership that chooses to be treated as a limited liability partnership by registering with the Secretary of State. This is the method of choice by many attorneys and accountants because it shields the partners from liability, is more flexible and is given partnership tax treatment (uslegal, Limited Liability Partnership Law & Legal…...

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