Limited Liability Partnership

College
Essay
Miscellaneous
Pages 9 (2259 words)
Download 0
Limited liability partnership is a concept relating to the liability of the partners as it implies from its name. As we all know that in the partnership form of conducting business, every partner is responsible by law for the actions and deeds of other partners in the business…

Introduction

In a general format of partnership business it is a legal practice that all partners have unlimited liabilities with respect to their business debts and if one person is declared insolvent then the other partners are bound by law to pay for his debts, loans and liabilities from their own personal assets and property.
Limited liability on the other hand is not the same as other partnership concerns; it differs a lot in the liability context from other partnership businesses. With respect to the liability clauses, it is more resembling to the corporation. Limited liability means that partners have limited liabilities with respect to their debts and loans of the firm. One partner is not jointly and severally responsible for the actions and deeds of other partners and that his personal assets will not be used to pay for the liabilities of the firm or other partners. Therefore, every partner in the partnership firm will have limited liability towards the liabilities of the firm and other partners in the firm as well. This is very much same to the limited liability company in which every member of the company is responsible to pay for the liabilities of the company to the extent he has invested into the company. ...
Download paper
Not exactly what you need?

Related papers

Partnership Law
Partners' liabilities are differently prescribed in that liability caused by any error of one partner need not affect the other partners. State registration is required but some of the states stipulate that partners should take liability insurance or has adequate assets to meet likely claims. This is very much applicable to firms of professionals like accountants, lawyers, architects. Not all the…
Innovation and Partnership
Innovation is the process involved in the making of improvements by introducing new ideas, or the act of introducing something new (The American Heritage Dictionary). It is "the process of translating new ideas into tangible actions with societal impact." (Krisztina Holly, Vice Provost, University of Southern California, and Executive Director of USC Stevens Institute for Innovation), or a…
Legal Memorandum: Issues and Procedures
Having been retained to represent MUB, a collection of twelve partners, it is unnecessary to discuss the sole proprietorship form of business organization. This advice refers to the partnership generally as a client rather than to any specific partner or administrative assistant in particular. The preliminary analysis, therefore, must begin with a discussion of your status as a partnership.…
Business Organization Essay
The choice of the organization for my consultancy after considering all the above factors is narrowed between Limited Liability Company and Limited Liability Partnership. To begin with my inclination is to start with LLP. I would discuss with all the interested classmates draft an agreement specifying at least the following points…
Corporations Law in Australia
A limited liability company, also called a limited liability corporation, usually functions on a smaller scale than a limited liability partnership (Wikipedia 2008), hence, it's method of management and, therefore, it's level of limited liability, though in many aspects the same, does differ from that of a partnership. A company is generally run by the managers, who are responsible for the general…
Limited Liability Partnership
In a general format of partnership business it is a legal practice that all partners have unlimited liabilities with respect to their business debts and if one person is declared insolvent then the other partners are bound by law to pay for his debts, loans and liabilities from their own personal assets and property.…
Law and the Corporation
There are two types, one, as mentioned above is a Public Limited Company, and the other is a Private Limited Company, which as the name suggests cannot sell its shares to the general public. In the UK, the Companies Act permits several people to form a company for any business that is lawful. Private companies are the easiest kind of company to begin as well as run in their initial stages.…