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Limited Liability Corporation and Partnership Paper

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LLC and LLP Paper
Limited Liability Corporation and Partnership Paper

Explain roles of limited liability corporations and partnerships. If you were establishing your own business, under what circumstances would you choose one instead of the other?

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This solution provides a paper on limited liability corporation and partnership.

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Introduction

In present doing business is not easy as it requires a basic idea that needs to be effective in long-run. At the time of starting a business, it is required to make a decision of what type of business entity will be established. The use of a specific type of entity is vital for attaining goals like capitalization and protection of business (McCahery, Raaijmakers, Raaijmakers & Vermeulen, 2004). At the time of making selection of a type of entity, a company need to consider number of business and market related factors. In present the most common forms of business that are used and will be discussed in this paper are Limited Liability Corporation (LLP) & Limited Liability Partnership (LLP).

Role of Limited Liability Partnership

Limited Liability Partnership is also known as registered limited liability partnership (RLLP). This type of partnership serves owners with limited personal liability. In this type of business entity limited partnership is attached to each partner. It is beneficial for professional groups, like lawyers and accountants (Moye, 2004). The role of this type of partnership is to save partners as in this a partner does not need to take liability of other partner and his works. For instance, if a partner has debts and obligations for that other partner cannot be held responsible (Ramachandran & Desikan, 2010).

In case if partnership goes bankrupt, ...

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