Thursday, April 2, 2015

Difference between a limited company and a partnership?

Difference between a limited company and a partnership?
There are several, but the fundamental difference is in liability.

A limited company is really a limited liability company. If the company cannot meet its obligations, the shareholders are liable only up to the amount that they initially put up, or promised to put up.
A partnership usually leaves the partners jointly and severally liable for all the debts of the partnership.

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