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Advantages and Disadvantages of Registered Partnerships and Registered Limited Liability Companies
Source: | Author:finance-94 | Publish time: 2019-05-02 | 82 Views | Share:
Many people do not know whether it is better to register a partnership or a limited liability company. Whatever company is registered, there are advantages and risks of competence.
Many people do not know whether it is good to register a partnership or a limited liability company. No matter what company is registered, there are advantages and risks of competence.           
1. Advantages and disadvantages of partnerships:           
Advantage:            Simple, low cost, but higher than the sole proprietorship enterprise, fast establishment, limited liability for limited partners.           
Disadvantages:            It is difficult for an unlimited partner to take unlimited responsibility and raise funds, but it is easier to transfer property rights than a sole proprietorship enterprise.           
2. Advantages and disadvantages of limited liability companies:           
Advantage:           
(1) Limited liability companies not only retain the advantages of limited liability of joint stock companies, but also overcome the shortcomings of decentralized ownership and weak shareholder responsibility.           
(2) Limited liability companies not only inherit the advantages of transferable shares, but also overcome the shortcomings of too frequent transfers of shares in joint stock companies.           
(3) The establishment procedure of a limited liability company is simpler than that of a joint stock company, and its internal management is easier.           
Disadvantages:           
(1) The financing scale and scope of a limited liability company are strictly limited and cannot compete with a joint stock company.           
(2) The company has strict restrictions on the transfer of shares. Even when the shareholders are dissatisfied with the company's operation, they can not transfer their capital freely, which is not conducive to effective supervision of the operators.           

1. Advantages and disadvantages of partnerships:           
Advantage:            Simple, low cost, but higher than the sole proprietorship enterprise, fast establishment, limited liability for limited partners.           
Disadvantages:            It is difficult for an unlimited partner to take unlimited responsibility and raise funds, but it is easier to transfer property rights than a sole proprietorship enterprise.           
2. Advantages and disadvantages of limited liability companies:           
Advantage:           
(1) Limited liability companies not only retain the advantages of limited liability of joint stock companies, but also overcome the shortcomings of decentralized ownership and weak shareholder responsibility.           
(2) Limited liability companies not only inherit the advantages of transferable shares, but also overcome the shortcomings of too frequent transfers of shares in joint stock companies.           
(3) The procedure of establishing a limited liability company is simpler than that of a limited liability company, and its internal management is easier.           
Disadvantages:           
(1) The financing scale and scope of a limited liability company are strictly limited and cannot compete with a joint stock company.           
(2) The company has strict restrictions on the transfer of shares. Even when the shareholders are dissatisfied with the company's operation, they can not transfer their capital freely, which is not conducive to effective supervision of the operators.