Brief Comparisons Of The Law Of Partnership Of The United States And The People's Republic Of China

Partnerships and Corporations are very important organizations.The legislation of relevant business organizations directly impact the Chinese economic market's development.However,the Chinese economic market started late and is still immature;there are still many ways to update Chinese business organizations' legislation.The American market is developed,the legislation of business organizations is more thorough,and serves as a preferable model to some parts of Chinese business organization legislation.The sophistication of American business organizations,including partnerships and corporations and some other business organizations,are not yet included in the Chinese current economic market.Thus,the author will analyze Partnership Law as the main topic,and the Corporation Law as a subsidiary topic,for the purpose of making the analysis clearer.The first section is serves as an introduction to the research,including methods of research and some basic tips.The second section is gives details on the different types of Partnerships,including General Partnership,Limited Partnership,Limited Liability Partnership,Limited Liability Limited Partnership,and a type of business organization that is not a partnership or a corporation – the Limited Liability Company – which combines the benefits of Limited Partnerships and Corporations.Moreover,this section includes the introduction of a type of corporation called "close-corporation" under U.S.case law.This type of corporation operates similarly to U.S.partnership entities.The third section includes more details about Limited Liability Companies.This includes the differences between the Limited Liability Company and the Corporation,an analysis of the history of the development of these two types business organizations,and explains why these two type of business organizations are most welcome among investors.This section also introduces the two main reasons of this phenomenon,one is the "S" Corporation tax classification,the other one is the "Veil Piercing" Rule.The fourth section is about the current development of Chinese Limited Partnership Law,which is more welcome to new and small investors in China.There is a comparison with the Limited Partnership Law of the U.S.included in the former sections.Next is a discussion of the Chinese character of economic market development and the impact of regulation and policy issued by the Chinese executive government.Also given are two examples to show how regulation and policy influence foreign investors in China.The last section is about what we could learn from the American Business Organization Law.,the ways the Chinese Partnership and Corporation Law could be modified,and the possibility that the Limited Liability Company could be applied in China.