*By Ameen Ahsan Strategy Consulting*
A new trend that has been observed of-late is that more and more entrepreneurs have started opting for Limited Liability Partnerships.
As the year draws to a close, everyone is asking the same question – Should I form a Partnership or a Limited Liability Partnership? Which option will suit me better?
Technically, a Limited Liability Partnership has many advantages. In fact, it would not be wrong to say that an LLP combines some of the advantages of a Private Limited Company with some of the advantages of a simple Partnership.
A Limited Liability Partnership, popularly known as LLP combines the advantages of both the Company and Partnership into a single form of organization. In an LLP one partner is not responsible or liable for another partner's misconduct or negligence, this is an important difference from that of a unlimited partnership. In an LLP, all partners have a form of limited liability for each individual's protection within the partnership, similar to that of the shareholders of a corporation. However, unlike corporate shareholders, the partners have the right to manage the business directly. An LLP also limits the personal liability of a partner for the errors, omissions, incompetence, or negligence of the LLP's employees or other agents.
Advantages of LLP
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