2006-07-18 02:31:13 · 7 answers · asked by dbrifles3 1 in Business & Finance ➔ Corporations
Limited Liability Partnership,
Limited Liability Corporation
2006-07-18 02:39:31 · answer #1 · answered by Holly p 3 · 0⤊ 0⤋
LLP = Limited Liability Partnership
LLC= Limited Liability Company
The rules governing these entities vary by state. Both are designed to limit the liability of individual partners or members from liability incurred by the other partners or members. They also protect individual members or partners from contractual obligations of the LLP or LLC
Where I am from, an LLP must carry 100,000 in insurance. However, the partners in an LLP are not liable for the acts of their fellow partners unless they knew about them or supervised them, etc. Also, the partners are not liable for contracts entered into by the partnership. The end result is that if someone gets real upset and sues, they can go after the LLP assets or the individual partner that did the bad act but not all the other partners. In a regular "general" partnership, each partner is on the hook for everything every other partner does.
Limited Liability Companies are very similar to LLP's except that there are not partners. Instead they are called members. Also, there is no insurance requirement. However, courts will disallow liability protection for members if it looks like the LLC is just a thinly capitalized shell that is not capable of meeting its obligations.
Basiclly there is no free ride. If you want the liability protections afforded by these entities, you have to capitalize and/or insure them adequately to meet the obligations that they will incur.
2006-07-18 10:52:22 · answer #2 · answered by Michael 3 · 0⤊ 0⤋
I just learned this in class but llp stands for Limited Liability Partnership and llc stands for limited liability corporation. Both companies are limited in what they can do under the rules of others whereas small business owners (sole proprieteorship) are unlimited in what they do. LLP AND LLC don't have the power to just do anything.
2006-07-18 09:38:01 · answer #3 · answered by deviousbeautifulangel 3 · 0⤊ 0⤋
LLP - Limited Liability Partnership
LLC - Limited Liability Corporation
2006-07-18 09:35:06 · answer #4 · answered by Tangled Web 5 · 0⤊ 0⤋
Limited Liability Partnership and Limited Liability Corporation
2006-07-18 09:35:29 · answer #5 · answered by Erin 7 · 0⤊ 0⤋
Limited Liability Partnership or Company.
2006-07-18 09:34:53 · answer #6 · answered by The Man 4 · 0⤊ 0⤋
freg43
2014-07-15 11:33:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋