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we four frnds are doing a software development buss now we r confuse that should we go a proprietorship or partnership , LLP or Co. we hv jst started so recipes r nt high which is best for us as we r new we dont hv much money n time for these legal compliance plz describe pro n cons for each status TIA we want to avoid litigation n so much formality s
Replies (8)
you can start with llp and then convert
Sir go for partnership ...
@ rajesh sir in LLP we hv to much legal compliance like ROC n audit
need proper ans to problem like why LLP or partnership benefits tax treaties etc TIA
okay,there is no option of sole propritership as there are multiple people involved . so there are options of partnership, llp and pvt. ltd company.
litigation is there in all cases but minumum compliance are there for partnership.
there should be a partnership deed. tax will be 30% flat, benifit of availing 44Ad and sec. 40(b) of income tax will be there.
these benifits are not available for LLp and Pvt. Ltd.
hope it helps you
@ shanky sir , we r planing that one person to be proprietor n other will be as salary employees so we will get benefits of 250000 +87a+80c etc and we will make a internal doc for internal
In my view go for LLP or Partnership Deed
as you are software developer your client will be big companies these companies hasitate to give contracts to Proprietorship
So in my View go for Partnership which will be very easy to form
@ manoj i think u r right
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