What Is The Difference Between Limited Liability And Limited Partnership (LLP)
KEY TERMS
Limited Liability, LP, LLP, LLC, PLLC, SECP.
Limited Liability. Person 's limited liability to a fixed sum to the extent of amount invested in a company or partnership. In case if company (limited liability) is sued then shareholder is not personally liable for, other than the amount of their investment in that company.
Limited Company. It is type of a company whose liability is limited.
Limited Partnership (LP). A business established by one or more general partners, who manage and undertake legal debts and obligations, and one or more limited partners, who are liable only to the extent of their investments but are not liable for company obligations.
Limited Liability Partnership (LLP). A type of general partnership provides protection
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Property, assets, liabilities, rights and obligations can be owned by LLP being separate legal status from its partners.
• There is continuity of existence because LLP has perpetual succession respective of insane, death or retirement of partner. However partners are not in such a position to dissolve LLP.
• The Partnership Act, 1932 is not applicable to LLP. However certain clauses of companies’ ordinance 1984 may be applicable.
• Profit of the LLP will be taxed and distribution of same in dividend form will not be taxed.
International Flavour
Companies with limited liability exist in business law worldwide. However, the limited liability company is a specific legal structure defined by the laws of U.S. states, with quite distinct characteristics. Many other countries have similar structures.
Argentina
Although not an exact equivalent, the Argentine variant LLC is limits the liability of its members up to their capital contribution in the company and the commercial partnership is limited to a maximum of 50 partners.
Brazil
The corporate structure in Brazilian law most similar to the American LLC is under the new Brazilian Civil Code of
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