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Difference in owner's liability for the general business debts

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1. Explain the difference in owner's liability for the general business debts of a limited liability company (LLC) and a limited liability partnership (LLP).

2. What is the difference between an interpretive regulation and a legislative regulation?

3. What is the tax benefit rule? Provide an example of its application.

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1. Explain the difference in owner's liability for the general business debts of a limited liability company (LLC) and a limited liability partnership (LLP).
The main difference among these business structures has to do with liability protection. A sole proprietorship offers no liability protection. The sole proprietor bears personal responsibility for the debts, claims and obligations of the business.
A limited liability partnership usually protects one partner from being liable for the actions of the other partner(s). However, in Virginia a "registered limited liability partnership" refers to a limited partnership that takes the additional step of registering as a limited liability partnership. It is still a limited partnership, and a limited partnership consists of a general partner and a limited partner. The general partner, like a sole proprietor or a partner in a general partnership bears full personal ...

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