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Can I ask what is the difference of Limited partnership and Limited liability company? Does it have the same meaning and similar structure?
Hi Vu,
The difference between LLP’s (Limited Liability Partnerships) and Limited Companies is tax.
Ltd Companies are subject to Corporation Tax but a LLP is not. Otherwise they share similar features as described in the lecture.
I hope this helps?
Kind regards,
Vijay
Hi Vijay,
Can I interfere in this question. Suppose that Vu meant the difference between limited liability partnership and limited partnership ,does this change the answer?,
Thanks,
Hi Alawi,
Good question 🙂
So a Limited Partnership (LP) is governed by the Limited Partnership Act 1907. It basically allows Partners to limit their liability but only if at least 1 partner remains unlimited in their liability. So basically its a hybrid/mix.
Whereas a Limited Liability Partnership (LLP) is governed by the LLP Act 2000 and this allows ALL partners to limit their liability.
Both LP’s and LLP’s are similar in that they need to both be registered at companies house but that both are not subject to corporation tax.
I hope this helps?
Kind regards,
Vijay
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