Limited Liability Entities

Limited Liability Company

A limited liability company (LLC) is a hybrid between a regular corporation and a partnership A partnership is defined as “an association of two or more persons to carry on as co–owners of a business for profit.” While no particular form of contract is necessary to create a partnership, a partnership contract usually provides what the partners’ ri . These business entities offer the flexibility and tax advantages of a partnership plus the limited personal liability of a corporation. The owners in an LLC are the "members" who share in the profits of the entity [similar to partners in a partnership] and managers who generally do not have a financial stake in the business but are responsible for the day-to-day operation of the business. Each State has established statutes regulating the formation and operation of an LLC.

Limited Liability Partnership

A limited liability partnership (LLP) is a partnership in all respects except that there are detailed limitations on the liability of certain partners, which are described in the partnership agreement. LLPs are popular among professionals such as doctors, lawyers, and accountants. More traditional business organizations, however, often opt to become limited liability corporations (LLCs).