Limited liability company vs. Limited partnership

LLC OPERATION AGREEMENT

Limited Liability Company vs. Limited Partnership

A limited liability company is formed to protect a sole proprietor or small business from financial liability should damages occur during business operations. However, a limited liability company has many other uses including asset protection and real estate holding.

Benefits of A LLC

  • Asset Protection
  • Lack of double taxation
  • The officer’s personal assets are shielded from business liability.
  • Paperwork requirements are greatly decreased, including the reduced necessity of preparing annual minutes.
  • No waiting period for acquisition of benefits
  • Ongoing lifetime security

A limited partnership can be used in the management of business, real estate and financial assets. A common reason for filing a limited partnership is to legally govern control over operations or development of a business.

Benefits of A Limited Partnership

  • Protection of Assets
  • A corporation owned by you, your spouse, eligible partners, helping you keep control of the partnership
  • Others such as your spouse or Living Trust, may be appointed limited partners without decision making power
  • Children are eligible to be limited partners
  • The limited partnership serves to protect business and family assets.