Here are some of the key advantages of an LLP.
- Limits Potential Legal Liability. The main benefit of creating an LLP is a balance of management control with reduced liability exposure. …
- Allows for Flexible Roles for Partners.
- Provides for Relative Ease of Formation.
- Offers Possible Pass-Through Tax Relief.
An LLP can be converted into a Pvt. Ltd. company as per the provisions contained in Section 366 of the Companies Act, 2013 and Company (Authorised to Register) Rules, 2014.
LLPs combines the operational advantages of a Company as well as the flexibility of Partnership Firms. The fee for incorporation of an LLP firm is very nominal as compared to that for a Private Limited Company. The compliance requirements for an LLP are significantly lower than those for a private limited company.