1) Differences between a limited liability partnership and a general partnership.

Limited liability partnerships offer some protection for partners' personal

assets by limiting their liability to that of their interest in the company only.
No personal liability of partner, except for own wrongful act or omission or without
authority.
Liabilities borne by the partners are jointly and severally with the LLP to the
extent of unpaid share capital only.
o For example, A and B are attorneys and set up a limited liability
partnership to share in each others' success.
o Their firm is sued by a former client, but both A & B will not have personal
assets at risk.

A general partnership is an agreement between two or more people who share

equally in profits and liabilities for the company.
General partners are also responsible for the company's solvency and liabilities
Unlimited liability rests on each general partner, even if one partner is solely
responsible for any illegal activities or financial problems.
o Unlimited liability (jointly and severally liable with the partnership) which
can extend to personal assets of the partners
Each general partner can act independently on behalf of the company without
consent from the other partners.