What are the advantages of a partnership versus a limited liability partnership?
Need to be wary of the definitions a little here as there are subtle variations across regions. As such I can only speak from experience for the following regions Australia, India, Singapore, Malaysia and China. Within these regions a LIMITED LIABILIT PARTNERSHIP is achieved through registering a company with the appropriate authorities (www.asic.gov.au) and the partners each hold a number of shares. ie Company is structured with 100 shares with limited liability of $1 per share. This would then have you with 50 shares (limited liability $50) and your partner 50 Shares. This extends a great deal of protection to you should the partnership not work, losses be incurred or someone sues the company. As directors your liability is limited to the value of your (SHARES $1 per share ). A PARTNERSHIP is a little more risky as it does not reduce your possible losses. This is achieved through two people agreeing to sign paperwork to share profits, share costs (share liabilities) and while doing t
