To Determine: The meaning of Limited Liability Corporation (LLC) and the reasons why it differs from Limited Partnership (LP).
Introduction: A limited partnership is otherwise called as LP; a type of partnership firm in which a portion of the partners contributes just fiscally and are at risk just to the degree of the measure of cash they have contributed.
A limited liability company is otherwise called as LLC; a form of business composition that joins qualities of both corporation and sole-proprietorship. A limited liability company is qualified for pass-through tax assessment highlight of a partnership or sole proprietorship, whereas in the meantime restricting the liability of the proprietors, like a corporation.
The following reasons support that Limited Liability Corporation differs from Limited Partnership:
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