Benefits and Disadvantages of Ordinary Partnership and Limited Liability Partnership

Running Head: BUSINESS AND CORPORATION LAW
0
Company Law
Business and Corporation Law
7/15/2018
Business and Corporate Law
Student’s Name

LAW3001S 1
Contents
Introduction......................................................................................................................................2
Ordinary Partnership........................................................................................................................2
Limited Liability Partnership...........................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

LAW3001S 2
Introduction
A person may start and carry his/her business activities under different business
structures. The partnership is one such structure that would be discussed in the presented report
along with its positive and negative aspects. A partnership is a business structure where a
business has more than one owner who manages the affairs of business to earn profits and known
as partners (Entersingaporebusiness.info, 2019). Two types of partnership can be there namely
traditional partnership and limited liability partnership. Both the type of partnership structure has
its advantages and disadvantages that will be discussed further. The main motive of the report is
to check the truth behind the statement that formation of ordinary partnership is not justified in
any way considering benefits that a person may get being a partner in limited liability
partnership.
Ordinary Partnership
Starting the discussion from the ordinary partnership, this is to state that this structure
provides many benefits to the partners. The very first benefit of this partnership is easy
formation. People may simply form a partnership firm by developing a partnership deed in the
oral or written mode. This is a very simple process where no significant legal formalities are
there. An ordinary partnership is just similar to a sole trader business where no legal liabilities
are there. Although it does not mean that operations of such firms are not regulated under any
law. Common law as well statue contains the provisions related to the partnership. Different
countries have different legislation on this subject in addition to common law. For instance in
Singapore, Partnership Act is there which has been issued in 1994. This act provides the liability