Limited Liability Partnership is solely for the professional services firms having limited liability protection for the partners providing instant success to the businesses. For larger businesses, Partnership firm has lost its significance with the introduction of the Limited Liability Partnership (LLP). As LLP holds the cost-effective partnership with the benefit of unlimited liability in which partners are not personally liable for business debts. The removal of partner or if partners leave, the business will sustain with other partners. The business can only dissolve if all the partners mutually agree upon the decision. Unlike Partnership, LLP is transferable as any person can instantly welcomed as a designated partner and the ownership can be easily transferred.In order to understand and choose the best business model, it is very important to understand the benefits and differences from proprietorship and partnership.
The normal partnership structure and LLP share the same features, when it comes to core management, distribution of profit and excise liabilities. However, it provides the partners less limited liability. The registration require LLP agreement mainly consists of management policies, addition of new partners, new policy creation strategies and details of partners and their shares and profits within the company.