Differences between Ordinary Partnership and Limited Liability Partnership
Ordinary partnership Formation Can be formed informally by two or more persons agreeing to carry on business in partnership Limited Liability Partnership Formally incorporated by registration with the registrar of companies Corporate Personality Ordinary partnerships do not have corporate personality Limited Liability Partnership do have corporate personality Regulation Ordinary partnership regulated by partnership law, notably the PA 1890 Limited Liability Partnership regulated by company law unless LPPA 2000 states otherwise. Designation of Partners The partners of ordinary partnership are known as partners. The partners of limited liability partnership are known as members. Liability of Partners The partners of an ordinary partnership are jointly liable for the debts of the partnership and are jointly and severally liable for its liabilities The members of an LLP are not generally liable for the debts and liabilities of an LLP.The LLP itself is liable Disqualification The partners of an ordinary partnership cannot be disqualified from acting as a partner of an ordinary partnership The members of an LLP can be disqualified from acting as a member of an LLP (or as a company director)
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