Company or LLP

Dear Anil,

As far as taxability is concerned both LLP's & Companies are taxable @ 30% Flat.

In case of LLP U can deduct Partner's remuneration based on ur Income whereas in case of Company Director's remuneration is allowed irrespective of Income of the company...

But the complaince cost is less in case of LLP..So that will be better option

Dear Anil...

Amir has given the perfect view according to ur situation..

I think LLP will be better if ur 1st priority is Lower the Compliance Cost..

But if u are going to get exposure for ur Company at National or Internation Level, then i suggest u for Company n not LLP.... Its purely from business point of view..

Adarsh

LLP is more preferrable for some of following reasons:-

1)LLP's Profit is taxed @ 30.9% whereas Company ,s Maximum Marginal rate of Tax is33.99%.

2)DDT is paid by Company on Distribution of dividend.DDT is N.A. for LLP

3)No audit requirement in case of LLP (if turnover does'nt exceed 60 lakh). Audit is Compulsory for all companies.

4)Less compliance burden in case of LLP.