What is a limited liability partnership?
A limited liability partnership is a partnership where the partners are not personally liable for the negligent acts of other partners that is available only to accountants, lawyers and doctors.
What are the tax advantages of a partnership?
All income flows through to the partners as there is no tax paid at the partnership level. Therefore, there is not double taxation. This also means that excess income will not be shielded from tax.
What is the main disadvantage of a partnership?
Each of the partners is jointly liable for the debts of the business. Therefore, if a partnership incurs debts greater than its assets, creditors can look at the personal assets of the partners.
