Business And Limited Liability Company

1295 Words6 Pages
Business can be run through different platform considering advantages the platform will offer. Limited liability Company is chosen over general partnership to be more advantageous. Limited Liability Company and general partnership are compared based on flexibility of business, continuity of business in case of transfer of ownership, and also the risk of possession of personal assets and risk of incurring business debt. 1.0 INTRODUCTION New business with more than single owner may consider being Limited Liability Company or general partnership. General partnership requires two or more people to agree to own and run a company for profit where management duties are shared among them including profits and loss. In contrast, a single member can own, manage and operate Limited Liability Company. A limited liability company with single owner can easily set up business strategies and guidelines without getting approval from anybody. General partnerships are not mandated to be registered with Registrar of companies. Partners are expected to disclose information to one another according to The Partnership act 1890 which applies to general partnership. Limited Liability Company is treated as a separate legal entity according to companies Act 1985. General partnership are formed when the partners begin business activities and not formed by state
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