It is very important to understand about your company structure before you decide to register business. Here we will try to present some variances between Limited Liability Companies and Limited Liability partnerships. Technically both are companies.
Limited Liability Company (LLC)
- Company
- Limited liability Company
- File Article of Organization or Formation
- Owners are called: Members
- Can be formed by one member
- Recognized in all 50 states but can be
- Restricted for specific functions
- Pass through Entity for Tax Purposes
Limited Liability Limited Partnership (LLLP)
What is LLLP?
It is a distinct entity form its partners unlike a general partnersip.
- Company
- Limited Liability Limited Partnership
- File Article of Organization or Formation
- Owners are called Partners
- Two or more partners
- Few states do not recognize LLP's
- Pass through Entity for tax purposes
- The large law firms and large accounting firms are LLLPs is that they can be an LLLP in every state. But they can’t operate as an LLC in every state
Limited Liability Partnership (LLP)
- Company
- Limited Liability Partnership
- File Article of Organization or Formation
- Owners are called Partners
- Two or more partners
- Few states do not recognize LLP's
- Pass through Entity for tax purposes
- The large law firms and large accounting firms are LLPs is that they can be an LLP in every state. But they can’t operate as an LLC in every state
Limited Partnership (LP)
- Company
- Limited Partnership
- Similar to General Partnership
- It is a partnership in which only one partner is required to be a general partner
- Pass through Entity for tax purposes
- Few states do not recognize LP’s
- General Partner carries more liability, and in cases of financial misfortune, the GP becomes "the generous partner
- Limited partnerships are distinct from limited liability partnerships, in which all partners have limited liability.
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