Question

importance of limited liabilities of partnership​

Answer 1

Answer:

Limited Liability: - The biggest benefit of doing business as an LLP is that the liability of each partner is limited to the extent of his/her contribution/share as opposed to the sole proprietorship or the traditional partnership firm where the personal assets of the proprietor or partners could be at risk in the ...

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Answer 2

Explanation:

Limited Liability Partnerships are often referred to in their abbreviated form as LLP’s. LLP’s were introduced in 2000 by the Partnerships Act 2000 to provide partnerships with the limited liability previously only available to companies. The LLP formation is popular when a ‘professional partnership’ would like the benefit of protected liability. This is particularly suited to accountants, solicitors, architects, consultants, surveyors and other fields of expertise where a partnership is preferred to a limited company. LLP’s may be suitable when the partners are members of an institute or individual earnings are clearly defined and not simply added to one pot and distributed by dividend. Within an LLP the earnings of the members is normally seen as personal income.