Which is better llp or pvt ltd company in terms of taxation

Dear Mayur,

1. Tax percentage for LLP & Pvt Ltd Co is same 30%. 

2. Yes it is possible.

3. Since Both LLP & Pvt Ltd Co requires attestation for varios documents, it is better to outsource.

4. Tax percentage will not Increase.

5. Important Point to look in to:

a) there is no restriction on number of partners in LLP. But Max share holder in Pvt Ltd is 50.

b) there is no tax on distribution of profit in LLP, But there is dividend distribution tax applicable to Pvt Ltd Co.

c) There is restriction on Partners remuneration in LLP for Income Tax purpose (i.e based on Profit). But there is no restriction on Remuneration payable to Directors of Pvt Ltd (But should be reasonable).

d) audit of books of accounts is compolsory for LLP only if turnover exceeds 1crore (As per Income Tax). But audit is compolsory for Pvt Ltd every year.

Dear Manjunath

Could you pls elaborate point 5b and 5c