Comparison of New Business Entities between the United States and United Kingdom: Are U.S. LLC and U.K. LLP really useful alternatives?

In both Korea and Japan, as well as other developed countries, law provides for different types of business organisation. One of the most significant issues in deciding on the type of business form is to have not only the most advantageous tax treatment but also the limited liability for the business owners. In the U.S.A, the limited liability company (LLC) is a business form which provides for taxation pass-through treatment while shielding members from personal liability for business debt. The LLC is a creature of state law, but is governed by subchapter K of the Internal Revenue Regulations(1). The emergence of a new legal form, i. e., the limited liability partnership (LLP), in the United Kingdom, in 2001, may be depicted by some as part of a general, evolutionary movement towards new limited liability vehicles, influ-