What are the characteristics of limited liability company? What protection does it offer the partners of...

What are the characteristics of limited liability company? What protection does it offer the partners of the company which a general partnership doesn’t?

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characteristics of limited liability company are as follows:

1. separate legal entity : the limited liability company has separate legal identity, which is compeletely separate from its owners.

2. limited liability: In LLC the liability of members is limited to their actions. they are not responsible for actions of other members.

3. Flexibility in taxation: the wide range of flexibility is available in case of tax treatment. It is possible to file either as a C-corportion or as a S-corporation.

4. easy formation and operation: the procedure of formation of LLC is simple and easy. As no requirement of holding annual meetings, its operations are easy too.

5. owners are called members: in LLC, the owners are referred to as the members of LLC

in general partnership, the liability of partners or members is unlimited whereas, in Limited liability corporation, the liability of members is limited to their actions. the members of LLC have the benefit of protection from personal liability.

ekkarill92 answered 1 month ago

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