Incorporation of audit firms involves the formation of a limited company by a partnership to limit its liability against claims for negligence, offering essential protection while maintaining legal compliance under the Companies Act.
Limited liability is a legal principle whereby a company's owners and shareholders are protected from being personally liable for the company's debts and liabilities, limited to the amount of their investment.
A Limited Liability Company (LLC) is an organization form in some states that may be treated as a partnership for federal tax purposes while offering limited liability protection to its owners at the state level. This entity may be subject to state franchise tax as a corporation. Two common forms of these entities are Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs), which protect individual partners from the liabilities of other partners.
A Limited Liability Partnership (LLP) combines the benefits of traditional partnerships with limited liability. It provides flexibility in business operation while offering liability protection similar to corporations.
A Limited Liability Partnership (LLP) is a business structure that combines the benefits of a partnership with those of a corporation. It provides its owners with limited liability protection while still allowing for the pass-through taxation benefits of a partnership.
An association of two or more people (partners) formed for the purpose of carrying on a business. Partnerships vary in legal structure and liability among partners and are specifically governed by laws and agreements.
A Partnership Agreement, also known as Articles of Partnership, outlines the partnership terms, including profit sharing, salaries, interest on capital, and introduction or retirement of partners, governed by the Partnership Act 1890.
Professional Indemnity Insurance (PII) is a form of third-party insurance that covers professionals, such as accountants or auditors, against compensatory claims arising from negligence or defective advice.
