What Are the Tax Advantages of a Limited Liability Partnership?

Limited liability partnership, the original English text is Limited Liability Partnership (hereinafter referred to as LLP), is a new concept that emerged in the United States partnership law in the early 1990s. It is a new partnership form that combines the limited liability of the company's shareholders with the inherent operational flexibility of the partnership and applies the general partnership law. It is a major change and development of the traditional partnership system. This new form of partnership has taken less than a decade from its inception to maturity to universal acceptance in the United States. Its activities have soon exceeded the scope of the United States and spread all over the world. In fact, it also entered China several years ago. This new form of partnership has been emulated by many countries. Britain, Canada and other countries have successively formulated With its own LLP law, LLP has become a new form of partnership that is popular around the world.

Limited liability partnership

Limited liability partnership, the original English text is Limited Liability Partnership (hereinafter referred to as LLP), is a new concept that emerged in the United States partnership law in the early 1990s. It is a new partnership form that combines the limited liability of the company's shareholders with the inherent operational flexibility of the partnership and applies the general partnership law. It is a major change and development of the traditional partnership system. This new form of partnership has taken less than a decade from its inception to maturity to universal acceptance in the United States. Its activities have soon exceeded the scope of the United States and spread all over the world. In fact, it also entered China a few years ago. This new form of partnership has been emulated by many countries. Britain, Canada and other countries have successively formulated With its own LLP law, LLP has become a new form of partnership that is popular around the world.

Chinese name

Limited liability partnership

Foreign name

Limited Liability Partnership

Limited liability partnership, the original English text is Limited Liability Partnership (hereinafter referred to as LLP), is a new concept that emerged in the United States partnership law in the early 1990s. It is a new partnership form that combines the limited liability of the company's shareholders with the inherent operational flexibility of the partnership and applies the general partnership law. It is a major change and development of the traditional partnership system. This new form of partnership has taken less than a decade from its inception to maturity to universal acceptance in the United States. Its activities have soon exceeded the scope of the United States and spread all over the world. In fact, it has already entered China a few years ago. For example, LLP has been established in American law firms that have offices in China. The strong position is also due to the objective necessity and inherent rationality of LLP to meet the needs of society. This new form of partnership has been emulated by many countries. Britain, Canada and other countries have successively formulated their own LLP laws. LLP has become A new form of partnership is popular around the world.

(I) Characteristics, advantages and disadvantages of various enterprises

In the United States, corporations and partnerships are considered to be two representative forms of business among a myriad of business forms. About the company, especially

The meaning of a limited liability partnership is that it stipulates that each partner still bears unlimited liability for the partnership debt, but only unlimited liability for the partnership debt caused by the business or fault for which he is responsible, and unlimited liability for debts caused by the fault of other partners Joint Liability.

Limited partnerships are mainly applicable to venture capital. Professional management organizations or individuals with good investment awareness as general partners bear unlimited joint and several responsibilities and are responsible for the operation and management of the enterprise; limited partners who are funders enjoy the partnership income and pay corporate debts. Only limited liability.

On the issue of external liability, the general partners of the general partnership and the limited partnership have assumed unlimited joint and several liability, and the partners (people) directly related to the limited liability partnership should bear unlimited joint and several liability for the huge debt caused by their wrongdoing . Therefore, for the creditor of the partnership, once his creditor's rights exceed the scope of the registered capital of the partnership, there are always partners who will bear the rest of the debts in accordance with the provisions of the law or the provisions of the partnership charter. From this point of view, the partnership still maintains its characteristics of unlimited liability.