Articles
Difference between Limited Liability Partnership and Limited Partnership
by Alison Amelia Business promotionStarting a business is easy. The real work is selecting the right structural model as per the requirements of the administrators. Limited liability partnerships and limited partnerships are the two most popular structural modals among the business owners both in UK and Scotland. The two are unique in their own stand. Read the content to know how.
The Differences
A limited partnership boasts a general partner and minimum one limited partner. Often this structural model is used for finite and one-off business ventures. In this partnership the general partner is given the responsibility to manage the day-to-day activities of the organization. But he isn’t permitted for managerial decision making. In Scottish LP a general partner is responsible for the business losses/ debts. Even his personal assets are taken into consideration to clear the debt. But the limited partner isn’t liable for bearing the losses what arise either due to malpractice or poor business performance.
On the other hand, LLP's also offer the same benefits as are offered by the limited partnerships. But still they boast more popularity among the business owners these days. As they require no general partner. Moreover, each and every partner is permitted to take managerial decisions in regard the business operations. In addition, the partners in an English LLP are protected against any debts or losses incurred by Limited Liability Partnership.
The Final Word
Overall, each model features preferable qualities, so choosing any one of them will bring huge profits to the business. Just make sure the one you are choosing suits your business type.
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About Alison Amelia 
Business promotion
127 connections, 0 recommendations, 310 honor points.Joined APSense since, November 28th, 2014, From London, United Kingdom.
Created on Dec 31st 1969 18:00. Viewed 0 times.
