If you are planning to start a business, but do not want to launch it alone and need someone who can be with you in every step of the business then the most simplest way is to go in to the partnership deed. It provides advantage of limited liability to its owners and meanwhile requires less maintenance. You can do the LLP registration online without any hassle as there are many agencies that will help you in this process of registration.
You can have a look on some of the benefits of LLP below:
- Limited liability protection: One of the main advantages of LLP is that one partner is not responsible for any negligence or misconduct done by the other partner. It also provides limited liability protection for the owners from the debts of LLP. Thus all partners can enjoy the protection of limited liability for each individual`s protection within the partnership. The business can be managed by all the partners directly as they have the legal rights to do so.
- Not affected by death of any partner: As LLP is a separate legal entity, it is not affected by the death or departure of any business partner. Thus the business is continued irrespective of the changes in ownership.
- No audit is needed: No audit is needed in LLP if the business has the turnover not more than 40lakhs and capital contribution of not more than 25 lakhs, making it ideal for the beginners and small businesses that are just launching their operation.
- No claim on the property: As LLP is an artificial judicial individual, it can own, acquire, and sell the property in its name. No claim can be made by any partner on the LLP property- until the LLP is going concern.
Now that you have come across the details of LLP, you can start up your business hassle free as even if the company goes bankrupt, the personal assets of the directors are safe. But you should know that you cannot convert your LLP in to a Private Limited Company as there in no provision on conversation of LLP in a private limited company.