What's the difference between limited partnership and limited liability partnership?
What's the difference between a limited partnership and a limited liability partnership(LLP)?
I know the difference between a general partnership and LLP but I came across the term limited partnership in some documents and I start to get confused...
Many Thanks!
-
Limited Partnership: Composed of general partners and limited partners; general partners are personally liable for business, including the actions of other partners, and limited partners are liable only for their investments
Limited Liability Partnership: Liability is limited to each partner's individual professional negligence and malpractice, and personal assets are protected, and requires a more complex formation processEasiest way to think about it is an LP being akin to a sole proprietorship, and an LLP being akin to an LLC - the most fundamental differentiator between them being liability protections.
Please sign in to leave a comment.
Comments
1 comment