What Are the Characteristics of a Limited Liability Partnership Llp

Characteristics of Private Limited Company. Limited Liability The liability of each member or shareholder is.

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Individual owners in corporations have limits on their personal liability.

. Owing to these characteristics it can be said that LLPs seem to show characteristics of both corporations and partnerships. It is designed to combine the limited liability which the members of a limited company enjoy with the benefits of flexibility confidentiality and tax transparency provided by unlimited partnerships. Even if a corporation is sued for billions of dollars individual shareholders liability is generally limited to the value of their own stock in the corporation.

Unlike shareholders partners possess the rights to manage the business as well. Members To start a company a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the Companies Act 2013. An LLP is a hybrid of a private limited company and a traditional partnership.

This limited liability is probably the biggest advantage to organizing as a corporation. Since all partners have limited and not total responsibility this is known as Limited Liability Partnership. Alll the aspects of Private Limited Company is discussed in the article.

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