What is Limited Liability Partnership?

Kishan Thakkar K

Overview

According to Wikipedia, The Limited Liability Partnership (LLP) is a partnership in which some of the partners (depending on the jurisdiction) have limited liabilities. It, therefore, has characteristics of both a partnership and a corporation.

Features of “Limited Liability Partnership”

In LLPs, the limited liability of a company is combined with the flexibility of a partnership.

A Limited Liability Partnership can continue to exist even if its partners change. It is able to hold its own assets and enter into contracts in its own name.

LLPs are separate legal entities that are liable for the full amount of their assets, but the partners are only liable for the amount they agreed to contribute to the LLP.

Furthermore, no partner is liable for the independent or un-authorized actions of another partner, so individual partners are protected from joint liability created by another partner’s fraudulent conduct.

Advantages of LLP form

LLP is one of the business models in which:

(i) An agreement governs how it is organized and operates.

(ii) Ensures flexibility without imposing detailed legal or procedural requirements.

(iii) Combines professional/technical expertise and initiative with financial risk-taking capacity in a creative and efficient way.

Conclusion

I hope you have found the blog helpful in understanding about limited liability partnership in some way. However, if you have any questions or comments, you can reach out to us at info@roodland.com. Any concerns or suggestions you have will be taken into consideration.

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