| Commentary

14.2 Limited liability

| Commentary

14.2 Limited liability

The use of a limited liability company or a limited liability partnership (LLP), as the name suggests, provides the proprietor or proprietors of a new business with the opportunity to take advantage of limited liability.

This is because the company once incorporated, or the LLP once registered, is a separate legal entity with an existence independent of its proprietors and it is therefore the company or the LLP which owns the property of the business and contracts with suppliers, customers and staff. Consequently, it is the company or the LLP which is primarily responsible for any business losses,

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