What are partnerships and limited liability companies?

Some business owners choose to create partnerships or companies limited rather than a company. A partnership may also be called a company and refers to a combination of a group of people working together in a business or professional practice.

While corporations have rigid rules on how they are structured, partnerships and limited liability companies allow division of the managing authority, profits and ownership among owners to be very flexible.

Partnerships are divided into two categories. Sponsored are subject to unlimited liability.If a company can't pay his debts, his creditors may require payment for goods personal the commandités.Commandités have the power and the responsibility of managing the company. They are analogous to the Chairman and other officers of a corporation.

Sponsors escape unlimited liability générales.Ils partners are not responsible individuals, the liability of the partnership. These are junior partners who have the right of ownership on the benefits of the company, but they are usually involved in high-level business management. A partnership must have one or more general partners.

A limited company (LLC) becomes more prevalent in small businesses.An LLC is a company with limited liability and it is like a partnership concerning flexibility to divide the profits between the propriétaires.Son advantage compared to other types of property is its flexibility in what authority of profit and the management are determined.This can be a disadvantage.Owners must conclude agreements very detailed how the responsibilities of management and the profits are divisées.Il can get very complex and generally requires the services of a lawyer to establish agreement.

A partnership or LLC agreement specifies how profits will be divided between propriétaires.alors company shareholders receive a share of the profits which are directly related to the number of shares they possess, a partnership or LLC does not have to divide the profits according to how much each partner has invested investi.Capital is only factors used in the allocation and distribution of profits.