THREE TYPES OF PARTNERSHIP

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LIMITED PARTNERSHIP

LIMITED LIABILITY PARTNERSHIP

DIFFERNCES

• Limited: Can only lose what's invested
• LLP: Responsible for others mistakes
• General: Equal in responsibility and in liability
• Limited: Only one partner required to be the general partner
• Limited: Only one or remaining partners contributes only money

ADVANTAGES

• Easy to establish
• Subject to few government regulations
• Provide entrepreneurs with a number of advantages
• Not subject to any special taxes
• Each partners assets improve the firms ability to barrow funds

DISADVANTAGES

• General: Any partner could lose everything (personal property, paying the firms debt)
• Limited: Can only lost what's invested
• General: One partner's action causes the firm's losses; all partners suffer
• LLP: At least one partner has unlimited liability