Discuss which entity has less potential liability and greater tax advantages, a partnership or an LLC?

Question

Discuss which entity has less potential liability and greater tax advantages, a partnership or an LLC?

Answer 1

While very similar, the LLC offers greater protection as it is a entity separate from its members.  A partnership is not separate from its partners, and the debts of the partnership can become the debts of the individual.  

As far as tax advantages, a one member LLC can choose to be taxed as a corporation which has numerous benefits to being reported as a schedule C on the individuals 1040.

Hope this helps.