A limited liability company is a hybrid between a partnership and a corporation.
Limited Liability Partnerships
A limited liability partnership is similar to a limited liability company but the limited liability partnerships are used for the professional firms like accountants and lawyers while the limited liability companies are used for other form of businesses. Both the limited liability partnerships and limited liability companies have limited liability like the corporations.
A corporation form of business is preferred because of the following reasons. Reduced risk of the owners because of the limited liability and, hence, higher value.
The corporation has growth opportunities because it can raise more capital. This gives it the ability to exploit more business opportunities for growth.
The value of the corporation is enhanced because the stocks are easily sold in the stock market.
