Quick Summary
A Limited Liability Partnership (LLP) is a contemporary business shape that blends the benefits of a partnership with the blessings of a corporate entity. While traditional partnerships have been a famous preference for small businesses, LLPs have emerged as a favoured alternative due to their spec
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
In a traditional partnership, partners have unlimited liability, meaning their personal assets can be used to cover business debts. In an LLP, partners' liability is limited to their agreed contribution, safeguarding their personal assets.
Yes, an LLP is recognised as a separate legal entity, distinct from its partners. This allows the LLP to own property and enter into contracts in its own name.
No, LLPs allow an unlimited number of partners, offering greater flexibility compared to traditional partnerships which may have restrictions.
Yes, LLPs benefit from perpetual succession, meaning the business continues to exist even if partners leave or pass away. In contrast, the departure of a partner in a traditional partnership often leads to its dissolution.
LLPs are not subject to Dividend Distribution Tax (DDT), and their profits are taxed based on each partner's individual share, which can be more favourable than the taxation in traditional partnerships.
CAclubindia
