What is Meant by Partnerships and Limited Liability Companies and What is the Difference?
companies that offer limited liability to the owners or members. What are partnerships and limited liability companies in relation to the manner of taxation? The tax on the net income is shouldered by the partners in a partnership while the members on the part of limited liability company. What are partnerships and limited liability companies in relation to obligations incurred through business operations? General and industrial partners are liable to all debts incurred by the partnership up to their personal assets. On the part of a limited liability company, members are liable only up to their investments. Except in cases where there are misrepresentations and fraud involved. In which case, they are no longer protected from personal obligations. What are partnerships and limited liability companies in relation to incorporation? In the United States, there is no specific statutory law governing the formation of partnerships. Each state has its own common and statutory law. Normally, t
