Question

Define each of the terms below, post your answers:

1. Partnership -

2. Limited partnership -

3. LLC -

4. LLP -

5. Check the Box -

6. Guaranteed payment

Answer 1

1. Partnership is an formal arrangement in which two or more parties cooperate to manage and operate a business.

2. Limited partnership is a partnership consisting of a general partner, who manages the business and has unlimited personal liability for the debts and obligations of the limited partnership, and a limited partner, who has limited liability but cannot participate in management.

3. LLC is the USA- specific form of private limied company , it is a business structure that combines a pass through combination of a partnership with a limited liability of corporation.

4. LLP is a seperate legal entity, is liable to the full extent of its assets but liabilty of partner is limited to their agrred contribution in llp