Limited liability company vs. Limited partnership
Limited Liability Company vs. Limited Partnership
A limited liability company is formed to protect a sole proprietor or small business from financial liability should damages occur during business operations. However, a limited liability company has many other uses including asset protection and real estate holding.
Benefits of A LLC
- Asset Protection
- Lack of double taxation
- The officer’s personal assets are shielded from business liability.
- Paperwork requirements are greatly decreased, including the reduced necessity of preparing annual minutes.
- No waiting period for acquisition of benefits
- Ongoing lifetime security
A limited partnership can be used in the management of business, real estate and financial assets. A common reason for filing a limited partnership is to legally govern control over operations or development of a business.
Benefits of A Limited Partnership
- Protection of Assets
- A corporation owned by you, your spouse, eligible partners, helping you keep control of the partnership
- Others such as your spouse or Living Trust, may be appointed limited partners without decision making power
- Children are eligible to be limited partners
- The limited partnership serves to protect business and family assets.