When considering the various types of business entities and finding out which type is best suits your needs, there are some subtle differences between a limited liability company (LLC) and a limited liability partnership (LLP). Each business entity has certain characteristics of a corporation and a business partnership. Each state has its own LLC and LLP laws. Therefore, persons forming either an LLC or LLP must understand the various differences between the two.
Each business entity has certain characteristics of a corporation and a business partnership. Each state has its own LLC and LLP laws. Therefore, persons forming either an LLC or LLP must understand the various differences between the two.
The Denver, Colorado business lawyers at Watson & Associates, LLC provide a wide range of corporate and business law services to new companies and those already in existence. We offer drafting and review services in addition to compliance with Colorado LLC laws. The law firm also offers litigation support for various types of business entiLLP and LLC litigation services.
Common LLC and LLP Differences
Personal liability protection: Both LLPs and LLCs allow for personal liability protecting for creditors and business debts. However, this protecting is only available when the partners follow the statutory provisions under Colorado business laws.
Tax benefits: A limited liability partnership and limited liability company allow for pass-through taxation to the business partners. Business owners should consult with their personal CPAs for further advice.
Professional vs non-professional business formation: Colorado LLC laws allow non-professional business owners to form a limited liability company. Alternatively, owners that offer professional services such as lawyers and doctors must form an LLP.
Business formation and operation: Both Colorado LLC Laws and LLP statutes require members to develop articles of organization and it is highly suggested to draft and operating agreement. Without these critical documents, disputes can be difficult to resolve.
In addition, when there is no partnership agreement, business partners may be bound by Colorado partnership statutes. The results may not be pleasant.
Additional LLP and LLC Information
Colorado Wide LLC and LP Legal Services
Statewide Legal Business Solutions & Business Partnership Law & Litigation Support: Our Colorado business partnership attorneys serve communities of Denver, Boulder, Aurora, Pueblo, Lakewood, Fort Collins, Englewood, Littleton, Arvada, Brighton, Longmont, Littleton, Centennial, Parker, Castle Rock, Larkspur, Colorado Springs, Greeley, Northglenn, Golden, Breckenridge, and Aspen, Jefferson County, Adams County, Arapahoe County, Boulder County and Douglas County.
Call our limited partnership lawyers at 1-866-601-5518 for a Free Initial Consultation.