In a limited liability company (LLC), owners, known as members, are not personally liable for your company’s debts and liabilities without a separate agreement. In a partnership, the partners of a business do not receive this kind of protection unless the agreement designates limited liability. Owners of an LLC must file articles of organization with the Iowa Secretary of State and comply with Iowa’s filing requirements before opening the business. A partnership does not require this level of paperwork or payment of fees before operations. Both forms of business structure report business income or losses on their personal tax returns.