Partnerships
The partnership has been a business vehicle for hundreds of years. Partnerships divide profits and losses according to the amount of equity held by each partner. While partnerships have low maintainance compared to corporations, they have no liability shield and each partner is 100% jointly and severally liable to third party’s for the claims made against the partnership as an entity.

Limited Liability Partnership
The Limited Liability Partnership, “ LLP” is a newer business vehicle which was intended to bridge the gap between corporations and partnerships.
Profits and losses are apportioned per the percentage of equity of each partner or as provided in the partnership agreement as a general partnership.

The LLP’s distinction is in how it treats third party claims ie. a limited partner is only potentially liable to the extent of his ownership interest as opposed to the 100% liability imposed under a general partnership.

LLP’s are quite common in passive investment situations.

---

business, company, corporate, offshore, trust, incorporate, incorporation, corporation, companies, corporations, lawyer, attorney, service, law, firm, register, registration, incorporating, services, lawyers, attorneys, provider,