What are the differences between a limited liability company and a partnership?
The main difference between an LLC and a partnership is that LLC owners are not personally liable for the company’s debts and liabilities. This means that creditors of the LLC usually cannot go after the owners’ personal assets to pay off LLC debts. Partners, on the other hand, do not receive this limited liability protection unless they are designated “limited” partners in their partnership agreement. Also, owners of limited liability companies must file formal articles of organization with their state’s LLC filing office, pay a filing fee, and comply with certain other state filing requirements before they open for business. By contrast, people who form a partnership don’t need to file any formal paperwork or pay any special fees. LLCs and partnerships are almost identical when it comes to taxation, however. In both types of businesses, the owners report business income or losses on their personal tax returns; the business itself does not pay tax on this money.
The main difference between an LLC and a partnership is that LLC owners are not personally liable for the company’s debts and liabilities. This means that creditors of the LLC usually cannot go after the owners’ personal assets to pay off LLC debts. Partners, on the other hand, do not receive this limited liability protection unless they are designated “limited” partners in their partnership agreement. Also, owners of limited liability companies must file formal articles of organization with their state’s LLC filing office, pay a filing fee, and comply with certain other state filing requirements before they open for business. By contrast, people who form a partnership don’t need to file any formal paperwork and don’t have to pay any special fees. LLCs and partnerships are almost identical when it comes to taxation, however. In both types of businesses, the owners report business income or losses on their personal tax returns; the business itself does not pay tax on this money. In fact
The main difference between an LLC and a partnership is that LLC owners are not personally liable for the company’s debts and liabilities. This means that creditors of the LLC usually cannot go after the owners’ personal assets to pay off LLC debts. Partners, on the other hand, do not receive this limited liability protection unless they are designated “limited” partners in their partnership agreement. Also, owners of limited liability companies must file formal articles of organization with their state’s LLC filing office, pay a filing fee, and comply with certain other state filing requirements before they open for business. By contrast, people who form a partnership don’t need to file any formal paperwork or pay any special fees. LLCs and partnerships are almost identical when it comes to taxation, however. In both types of businesses, the owners report business income or losses on their personal tax returns; the business itself does not pay tax on this money. In fact, LLC and partn
