Limited Liability Company (LLC):
A limited liability company (LLC), is similar to the partnership firm but here, members who run the company consist of only limited partners who enjoy the privilege of limited liability in the organization who can also run the business as a managing member.
Limited liability is a concept where the shareholders (who are also considered as the owners of the company) are responsible for the debts of the company limited only to the value of the shares they own in that company.
In a partnership firm, more than one owner runs the business. In this case, all the partners have to bear the liability and their partnership ends in case if any one of the partners withdraws or dies, unless any alternative is mentioned in their agreement.
Limited Partnership Company
A limited partnership company has two types of partners namely, the general partners and the limited partners. The general partners have the same features like the partners of a normal partnership firm. They are liable personally for the debts and losses of the company. On the other hand, the limited partners enjoy the privilege of having a limited liability towards the organization i.e., their liability is limited only to the amount of investment they have done in the organization. This is known as a limited partnership company.
The meaning of a limited liability company (LLC) and how it differs from a limited partnership firm.
A limited liability company (LLC) is a type of business organization where the maximum liability that a partner is supposed to pay is the amount of investment they do in the company. In other words, their liability is limited.
On the other hand, a limited partnership firm has the limited partner having the same feature of limited liability, but along with that they have general partners as well who share the debt obligation of the company personally.
A limited liability company (LLC) is a type of business organization where all the partners have the liability limited to the amount they have invested. Alternatively, a limited partnership firm have two types of partners where the general partners have the same obligations but the limited partners have the privilege of enjoying limited liability.
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