what’s the difference between llc and llp

what’s the difference between llc and llp is a common question for entrepreneurs and business owners who are deciding on the legal structure for their business. An LLC, or Limited Liability Company, offers owners personal liability protection while allowing flexibility in taxation and management structure. LLCs can be owned by one or more individuals, known as members, and the owners are not personally responsible for the company’s debts or legal liabilities. On the other hand, an LLP, or Limited Liability Partnership, is a business structure commonly used by professional service providers like lawyers, accountants, and doctors. It allows partners to share management responsibilities and profits while limiting personal liability. While both LLCs and LLPs offer personal liability protection, the key difference lies in the way they are structured and the types of businesses that typically use them. Choosing between an LLC and an LLP depends on the type of business, ownership structure, and liability protection needed.