Based in Draper, Utah, Prime Corporate Services is a consulting firm offering a broad range of services to small businesses. One of Prime Corporate Services’ offerings is entity registration for limited liability companies (LLCs) and limited liability partnerships (LLPs).
LLCs and LLPs are some of the most common forms of businesses in the United States. While the two sound similar, they have unique differences.
An LLC is a legal entity that shares some of the characteristics of a corporation and a partnership. It is formed by members who can be persons, corporations, or foreign persons. An LLC can have as many members as desired. LLCs are a popular form of business among small businesses because of their flexibility and tax advantages. LLCs are not subject to the corporate reporting requirements that corporations are. They also do not pay taxes at the corporate level since profits are passed down to individual members and taxed at that level.
An LLP is made up of partners, each of whom must be individual persons. There must be one managing partner to take legal responsibility over the affairs of the LLP. Other partners, referred to as silent partners, are not legally exposed, provided they are not in managerial control. An LLP shares the same tax advantages as an LLC.
Thinking of forming an LLP or LLC? Consult www.primecorporateservices.com.
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