what is a limited liabilty partnership ? explain advantages and disadvantages
Answers
What are the advantages and disadvantages of a Limited Liability Partnership (LLP)? ... Separate legal entity, hence partners are not personally liable for losses or debts, or wrongful acts of other partners. However a partner is personally liable for claims against his personal wrongful acts or omissions.
Explanation:
A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore can exhibit elements of partnerships and corporations. In an LLP, each partner is not responsible or liable for another partner's misconduct or negligence
One big advantage to a limited liability partnership is that the partners are not personally liable and cannot be forced to pay a business debt or liability with personal property or assets. Their personal assets would be shielded from all business liability
Disadvantages of an LLP
Public disclosure is the main disadvantage of an LLP. ...
Income is personal income and is taxed accordingly. ...
Profit can not be retained in the same way as a company limited by shares. ...
An LLP must have at least two members. ...
Residential addresses were historically recorded at Companies House.