There how they contribute to business operations

There are many benefits of forming limited
liability partnership with partners. One of the advantages is limited liability
preserves the personal assets of partners from the business debts. This is because
limited liability partnership is a separate legal entity to the members and
thus partners’ assets will not be affected. Sherrie (2017) stated that it is
also more flexible in setting up the process by which the business is to be run
unlike company requires to follow fixed and complicated process. There is a
better flexibility in the business management could be allowed. Partners also have
the power and right to decide on how they contribute to business operations
individually. Moreover, it has less formality and regulations to follow about the
management and structure of business compare to a company. Limited liability
partnership also can enjoy perpetual succession. That is, if one of the
partners passed away, retired or leave the partnership, the partnership still
can be continued to exist and operate. Aaron (2015) said that it is also more
simple and cheaper to incorporate and maintain because partners are not
required to have Annual General Meeting (AGM), hire a company secretary and
present audited financial reports. In addition, it is managed and controlled by
compliance officers or partners who responsible for decision making and to
vote. Lee (2015) mentioned that small businesses are likely to use limited
liability partnership.

            However,
limited liability partnership also has disadvantages. That is, it is required
to disclose accounts to the public. In this situation, they will have to
disclose the financial information and accounts to public. Furthermore, the
capital of limited liability partnership can only obtain from the members.
Thus, their relatives and close friends have to become members first if they
wish to raise capital from them.

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Besides that, private company is also another business
structure which is suitable for the business of Sandy and Damian. Under Section
2(a) of Companies Act 2016, private company refers to any company which
immediately prior to commencement of the 2016 Act was a private company under
any previous repealed written law. Under Section 2(b), any company incorporated
as private company under the act, or Section 2(c), any company converted into
private company under Section 41. 

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