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.
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Kishan Thakkar is working as a writer for the real estate and architecture industry. His experience includes working for various reputed firms. He is currently pursuing MBA in Business Management and handling operations for The Real Talks platform. He has a penchant for research, analysis, and understanding various fields. Discipline is the key to balance his diversified interest and work routine.