WHAT IS A LIMITED LIABILTY PARTNERSHIP?
A Limited Liability Partnership is a newer form of business partnership where all of the owners have limited personal liability for the financial obligations of the business.
There are no general partners in a limited liability partnership, but an LLP is similar to a general partnership. Each limited liability partner contributes to the everyday business operations. However, each partner enjoys limited personal liability for the other partners' acts.
All states allow some form of LLP, though state laws vary. Note that some states only allow LLP status for professional partnerships, like accountants, lawyers or architects. In all states, limited liability partnerships can only be formed by registering with the appropriate state office.
BENEFITS OF FORMING LIMITED LIABILITY PARTNERSHIP
1. The Liability of each partner is limited to his share as written in the Agreement filed at the time of creation of LLP as compared to Partnership Firms which have unlimited liability.
2. It has a Low Cost of Formation and is Easy to Form.
3. The Partners are not liable for the acts of each other and can be held liable only for their own acts as compared to Partnerships wherein they can be held liable for the acts of their partners as well.
4. Less Restrictions and Compliance are enforced on a LLP by the Govt as compared to the restrictions enforced on a Company.
5. As a Juristic Legal Person, a LLP can sue in its name and be sued by others. The partners are not liable to be sued for dues against the LLP.
Start your LLP with firstmancorp.com because we serve you beyond your satisfaction.
Siva Subramanian C
FirstMan Corporate Services LLP
Chennai - India
+91 97878 97000