What is the difference between a Partnership and an LLC?

An LLC can be structured to be taxed in the same manner as a partnership however the owners or partners of a partnership are jointly and severally liable for the debts and obligations of the partnership. This means that if the other partners are unable to meet their obligations to the partnership then each partner could be potentially responsible for the full amount of the debts and obligations of the partnership. In contrast to a partnership, the liability of the owners or members of an LLC is limited to the amount of capital investment each member has contributed.

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