Name: Tanzeela suri L1f18bbam0317

Assignment: 4

Section: B

Submission date: 6/30/2020

Submitted to: Sir Abid Rasheed

Partnership and limited liability

1. Company has not limitation there can be as many people they want while in partnership
there are limited people involved in it and in case of mishaps if one partner in unlimited
liability any one is due to pay the price in any way but not in company everyone has to
pay in the case of mishaps. Company and the people of company both are different
cases.
2. A company pays tax on its profits and directors are taxed on what they receive in
remuneration from the company. A partnership on the other hand is not taxed in its
own right as a company. Instead each of the partners is taxed on their share of the
profit, irrespective of how much or how little they have taken out of the business.

3. Limited company is that the liability of a company’s shareholders is limited to the

amount of the unpaid amount on the shares that they own. Partners on the other hand,
cannot restrict their liability (unlimited liability) and therefore can be held personally
responsible for any unpaid debts the partnership incurs.

4. A partnership is not required to file documents while An LLC on the other hand is
required to file these documents, which are also known as certificates of formation.

5. Partnership is suitable for professional business while LLC is suitable for smaller business
with few shareholders.

6. In a general partnership, all partners are fully liable for the business's debts and In a
limited partnership, only some partners are personally liable. These are the general
partners.

7. Partners of a partnership are responsible for managing the day-to-day operation of the
company. Duties and responsibilities of a partner will be described in the company's
partnership agreement. LLC members may choose to control the company's daily affairs,
or hire non-members to manage the company's daily affairs.
8. A partnership business may come to an end if a partner decides to sell his ownership
interest, or if a partner dies. On the other hand, an LLC may have an unlimited life,
unless a specific dissolution date is listed in the company's articles of organization.