What is LLP and How Does it Differ from Other Business Structures?

 

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What is an LLP?

An LLP is a business structure that provides members or partners with limited liability protections. It is most commonly used by professional service businesses such as

ð IT Companies

ð Retail Company

ð Manufacturing Company

Or other business services are

ð Partnership

ð Proprietorship

ð Sole Proprietorship etc.…

The LLP is similar to the general partnership, but with additional protections for the partners. Filingpoint will provide consultants for starting an LLP. Explore our comprehensive guide at FilingPoint.

 

How does it differ from Other Business Structures?

   Typically, the percentage of ownership and responsibilities for running the business are clearly defined in a written partnership agreement. This allows partners to be flexible with how they manage the LLP and gives them the ability to add or remove members. Like Private Company, LLPs are flow-through entities for tax purposes and profits or losses pass through to the partners’ individual income taxes. This is in contrast to Private Company which is taxed at the corporate level and then again at the shareholder level on distributions.

Another difference between the LLP and the Private Company is that while a Private Company can be either member-managed or manager-managed, a LLP must have two or more owners. It also must have a detailed partnership agreement which can be modified as needed. Depending on the type of business and location, LLPs may need to obtain licenses and central, state or local governments. Through our Business License Service Packages, we can help you identify and understand the specific requirements, prepare and file the necessary applications and secure any required licenses and permits on your behalf.

For more information on LLP registration services in Chennai and to avail themselves of expert assistance.

Call us at +91 72999 72500 or visit https://filingpoint.com for expert assistance today!