As an advocate, I would advise the entrepreneur to opt for the Limited Liability Partnership

when compared to the private limited company. There are numerous reasons for opting the
limited liability partnership. some of them are less restriction and less compliance, low cost of
creation and most significantly the flexibility that an LLP offers when compared to the private
limited company.

1) when it comes to the liability aspect, In LLPs, the Liability of the Partners is limited. Here
Only the sum contributed by the Buddies to the firm can be used to pay off the arrears of the
Partnership firm. Whereas when a Private Limited Company is under debts then its depositors
are accountable to sell their own properties for the payment. Comparatively liability is less in
LLP than in the private limited company. Hence, we can say that Limited Liability Partnership
is safe and secure for the budding entrepreneur.

2) when it comes to the taxation, In Limited Liability Partnership and private limited company,
the difference is in the divided distribution tax. In LLP Dividend distribution tax is not applied
whereas in private limited company, it is applied.

Incorporation of a Company (ASSIGNMENT)

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