What is the difference between a partnership and a LLC?
In a partnership, the partners are personally liable for the debts and obligations of the partnership, which means that all of their personal assets are at risk if there is a legal judgment against the partnership. Members of LLCs are not personally liable for any judgment and have at risk their assets in the LLC.
Related Questions
- My business entity (Corporation, LLC, Partnership, etc) is entirely passive and/or dormant and it is just paying a minimum tax to the Secretary of State. Is it required to get a license?
- Would it be better for the two LLCs to form the partnership, or just have them create a separate partnership when they work on the joint property venture?
- How does capital gain/loss generated in my LLC taxed as a partnership effect my Individual Income Tax Return?
