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What is difference between a limited company and a partnership?

Ishita Ramani

Ishita Ramani
Answered on April 07,2022

Below is the major difference between a Limited Company and a Partnership:

A single person can own an LLC, but a partnership requires at least two members to incorporate. Other business entities, such as a partnership, corporation, or another LLC, can be owned by LLCs. An LLC, unlike a partnership, can have foreign individuals and businesses as active owners.
When two people decide to start a business together, they form a partnership. To begin doing business, the partners are not obliged to file any paperwork with the local government or get any documents from them. An LLC, on the other hand, must get a certificate of formation from the state in which it is constituted. In addition, the company must be registered in each state where it does business.

I hope this answer solves all your doubts regarding the difference between a Limited Company and a Partnership.

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