Characteristics of Limited Liability Partnership
What is LLP? A Limited Liability Partnership (LLP) is a hybrid business entity that combines the features of both partnerships and corporations. This structure is particularly popular among professionals and businesses due to its unique benefits. Established under the LLP Act 2008 in India, LLPs offer flexibility in management while limiting the liability of its partners. Here, we explore the key characteristics of a Limited Liability Partnership . 1. Separate Legal Entity One of the most notable features of an LLP is that it is a separate legal entity from its partners. This means that the LLP can own assets, incur liabilities, and enter into contracts in its own name. This separation provides a clear distinction between the business and its owners. 2. Limited Liability As the name suggests, one of the primary characteristics of Limited Liability Partnership is the limited liability protection it offers to its partners. This implies that the personal assets of the partners are prot...