Sole Proprietorship |
Limited Liability Partnership (LLP) |
Company |
|
Legal Status | Not a separate entity | Separate entity | Separate entity |
Liability | Unlimited liability | Limited liability | Limited liability |
Personal Liability | Owners/Partners are personally liable for debts and losses | Partners are not personally liable for debts and losses incurred by other partners | Members are not personally liable for company’s debts and losses |
Property Ownership | Property in own name | Property in LLP’s name | Property in Company’s name |
Taxes | Profits are taxed at owners’/partners’ personal income tax rates | Profits are taxed at partners’ personal income tax rates | Profits are taxed at corporate tax rate |
Perpetuity | As long as owner is alive
Exists subject to partnership agreement |
Has perpetual succession until wound up or struck off | Has perpetual succession until wound up or struck off |
Cessation | By owners/partners – cessation of business | Winding up (Voluntary or Compulsory)
Striking-off |
Winding up (Voluntary or Compulsory)
Striking-off |
Corporate Compliance, Setting up a Business in Singapore
An Overview of Common Business Structures among Start-ups
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