LLC and LP structures

An LLC (Limited Liability Company) is a flexible business structure where owners, called members, have protected personal assets from business debts and liabilities. It combines features of both corporations and partnerships, offering liability protection with less formality. An LP (Limited Partnership) involves at least one general partner who manages the business and assumes unlimited liability, and one or more limited partners who invest money but have limited liability and do not manage daily operations. LLCs are often easier to manage and provide protection, while LPs are used for investment purposes with clear roles and risk limits.