Limited Liability Company / Limited Liability Partnership

Discussion in 'Legal Terminology' started by emylyo, Feb 13, 2013.

  1. emylyo Senior Member

    España, español y gallego
    Knowing that:

    [h=2]Limited Liability Company[/h]LLC owners, called "members," can manage their businesses or hire professional managers. In addition, LLCs enjoy a lot of flexibility. For instance, they can have as many members as they like, and corporations are allowed to be members. LLCs enjoy freedom from the state-mandated membership and management reporting requirements that corporations have. Most important, LLCs do not have to pay taxes. Instead, their profits and losses are passed through to their members' individual tax returns in the same way as a partnership. As a result, members enjoy the advantages of avoiding the "double taxation" of corporations as well as receiving tax relief from the poor performance of their LLCs.

    [h=2]Limited Liability Partnership[/h]LLPs have the same tax advantages of LLCs. They cannot, however, have corporations as owners. Perhaps the most significant difference between LLCs and LLPs is that LLPs must have at least one managing partner who bears liability for the partnership's actions. With an LLP, whoever is in charge is legally exposed in the same way owners of a simple partnership are exposed. Silent partners and investors in an LLP receive liability protection as long as they do not take on a managerial role. If they do, a court could pierce the veil of liability protection.

    What are the two equivalents in Spanish for these two terms?

    Sociedad de Responsabilidad Limitada and Sociedad Colectiva?

    Thanks in advance.

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