Question

prepare a comparative study between company and partnership.​

Answer 1

Answer:

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Explanation:

Partnerships and limited liability companies present several similarities for business owners looking for the right company structure. Both have similar income distribution and tax-reporting formats, and both are simpler to set up and operate than a corporation.

With a partnership, the owners are at risk should anything go wrong. With a corporation, the owners are generally protected. A partnership is set up easier and has less paperwork, legal requirements, and tax obligations than a corporation.

A Private Limited Company has many legal formalities for winding up that needs to be taken care of. ... In the Partnership Firm, a liability of the partners is unlimited whereas In case of Private Limited Company Liability is limited to the extent of shares held by every member.

There are four types of business partnerships:

LLC partnership (also known as a multi-member LLC)

Limited liability partnership (LLP)

Limited partnership (LP)

General partnership (GP)

A sole proprietorship is where the single owner operates the business. A partnership is similar, however, it is owned by two or more individuals. A corporation is a legal entity separate from the owners of the business.

A partnership comprises of two or more people sharing the right to make business decisions and in the net profits. They are also responsible for debts and obligations without limit. In contract private limited companies have reduced risks, as liabilities (debts) are separate from the owners .

General partnerships, the most common form. Limited partnerships. Limited liability partnerships. Partnership information. ... Partners share in the profits and losses to the extent of their share in the business. If each contributes 50 percent of the start-up money, then each is entitled to 50 percent of the profits, according to Weltman .