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midi13579
Newbie
Joined: 19 Jan 2012
Location: United States
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Posts: 14
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| Posted: 27 Jan 2012 at 00:20 | IP Logged
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Hi,
I have a question regarding to entities section in
Regulation 4. I am having a hard time defining the
difference between LLP and LLC since they are practically
the same, i.e Filed with states, owners are not liable
for entities' obligations, can managed directly. cannot
transfer ownership with out unanimous consent, flow-
through taxation.
What are the main different characters I should know/use
to define the difference between LLP and LLC?
Midi
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nolifecpa
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Joined: 12 Jun 2010
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| Posted: 27 Jan 2012 at 11:00 | IP Logged
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LLC:
requires at least 1 GP and 1 LP, usually nonservice providers
LLP:
does not require at least 1 GP, often used by service providers, each partner is liable for their own negligence but not other partners negligence
__________________
REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76
FAR-67,66
AUD-54,60's,65,83*
*expired
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striveforcpa
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| Posted: 27 Jan 2012 at 20:07 | IP Logged
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Under both LLP and LLC, all owners have limited liability
and therefore no personal liability.
Differences:
LLC can be formed with one individual only but LLP needs
at least two persons;
LLC has the characteristics of corporation whereas LLP
has the CXS of partnership
Laws vary by state, but in general LLCs can be formed by
any business or persons, while LLPs are generally
restricted to professionally licensed individuals
LLPs provide legal protection from the actions of another
partner whereas, a member in LLC does not have any
fiduciary duty to other members.
one last difference is...under LLC, we say " members"
where as under LLP, we say " partners"
__________________
FAR 10/11 84
BEC 11/11 83
REG 02/29 88
AUD 04/20 76(God is great)
Done
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CPA#1
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| Posted: 30 Jan 2012 at 12:59 | IP Logged
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nolifecpa wrote:
LLC:
requires at least 1 GP and 1 LP, usually nonservice providers |
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No. In LLCs, all owners are called "members." They can be member-managed or manager-managed. All members have limited liability.
__________________
FAR: 52,66,73,61,89
AUD: 47,87
BEC: 80
REG: 64,74,84
DONE!!!!!!!
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nolifecpa
Regular
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Posts: 135
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| Posted: 30 Jan 2012 at 15:39 | IP Logged
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CPA#1,
shoot! you're right, i got confused with LP which requires at least 1 LP and 1 GP
__________________
REG-65,71,74,73,70,74,79
BEC-60's,60's,69,71,76
FAR-67,66
AUD-54,60's,65,83*
*expired
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Topic: Difference b.t LLC and LLP
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