Therefore the limited partners are the partners which are not personally liable for the debts and liabilities that arises in the company. Hence, Option A is the correct answer.
The LCC files separately as a sole proprietorship, a partnership or a corporation, depending on its business structure. Once registered, a limited liability company is required to add the letters LCC to its business name. The limited liability company is known in some other countries as a private limited company.
Characteristics of limited liability company include separate legal existence, limited liability, flexibility in taxation, and simplicity in operation.
Limited Liability Company (LLC) A hybrid form of business, which is taxed like a partnership while offering owners the limited liability of a corporation.
Several limited liability structures exist, such as limited liability partnerships (LLPs), limited liability companies (LLCs), and corporations.
There are two types of Private Limited Liability entities in South Africa – the Private Limited Company (PTY) and the Close Corporation (CC). The latter can no longer be incorporated, but existing CCs may continue to do business in South Africa.
A limited company is a type of business structure that has been incorporated at Companies House as a legal 'person'. It is completely separate from its owners, it can enter into contracts in its own name, and it is responsible for its own actions, finances, and liabilities.Sep 12, 2015
They are a separate legal entity from their members. They have the benefit of limited liability for their members. They are taxed as a partnership. They have the organisational flexibility of a partnership.Feb 20, 2011
Limited Liability Companies (LLCs) allow for multiple owners (shareholders) of the company. The company is a separate legal entity from its owners. They are thus protected by limited liability. i.e. The company is responsible for any debts it incurs.
The main advantage of an LLC is that it blends the advantages of other business structures together without many of the disadvantages. The LLC is less complicated to set up than a corporation, but it offers its members personal protection against creditors should the company not be able to pay its debts.
Some of the advantages of LLCs are: Limited liability, choice of taxation (can be taxed as a partnership or corporation), flexible ownership rules, flexible distribution of profit and losses, operating flexibility.
An LLC as a Separate Legal Entity One of the defining characteristics of an LLC is that it's considered a distinct legal entity separate from its owners, or members. Similar to a corporation, it can buy and sell property, hire employees, bring lawsuits, and retain attorneys to defend itself.