Chpt. 2: Limited Liability Partnership

(incorporated) limited liability partnership (LLP)

2+ ppl legally register partnership biz (corporation)

the biz is separate legal entity w/ limited liability and governed by jurisdiction laws

typically used by lawyers, accountants, etc…

pros of a limited liability partnership (LLP)

not liable for corporation tax (profits taxed @ partner level); partner liability capped @ contribution amt.; flexible management

cons of a limited liability partnership (LLP)

must legally register (this is a lot of work and you have to pay fees); biz info public; more formalities and paperwork overall; potentially higher expenses bcuz of incorporation

sole proprietorship (unincorporated)

biz owned by 1 person and not legally registered

separate legal personality (incorporated)

biz is legally registered and is its own entity with assets and legal issues separate from owner

statutory compliance (incorporated)

biz adheres to common law