Concept of “limited liability partnership”
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners.
LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners.
Common businesses that become LLPs are law firms, accounting firms, and doctor offices because multiple partners are involved in the business.
An LLP has a separate legal entity under the law. A partnership firm has no separate legal status apart from its partners. The partner’s liability of an LLP is limited to the extent of their capital contribution to the LLP. The partner’s liability of a partnership firm has unlimited liability.
LLP protection
The huge advantage of forming an LLP is that it gives liability protection to individuals within the group as it is a separate legal entity. That means that individual members are liable only for the amount that they put into the business and assets like their own property are not at risk.
The huge advantage of forming an LLP is that it gives liability protection to individuals within the group as it is a separate legal entity. That means that individual members are liable only for the amount that they put into the business and assets like their own property are not at risk.