| A partnership, as we all know, is a kind of | | | | taxes based on their monthly income from the |
| business in which the liability for the business is | | | | LLP. |
| shared by two or more partners. A limited liability | | | | In an LLP business, all partners except the active |
| partnership (LLP) is a special kind of partnership | | | | partner are safe in case a lawsuit is filed against |
| that can be formed by two or more persons. | | | | the company. The active partner has to take all |
| An LLP business is run by one active partner and | | | | the responsibility for paying the amount of the |
| some other limited partners. The active partner | | | | lawsuit and even his/her personal assets can be |
| takes care of day to day activities of the | | | | affected by this. The other limited partners, |
| company and also manages the finances. The | | | | however, only have to sustain the risk of losing |
| limited partners provide capital investment and | | | | their investments. This is different from a general |
| receive a share of the profit, depending on the | | | | partnership business, where the partner with the |
| percentage of their shares in the company. | | | | highest amount of money in his/her hands has to |
| An LLP enjoys the usual benefits that any | | | | take up the responsibility of paying a greater |
| partnership business would enjoy. The greatest | | | | amount in case of a lawsuit. This makes LLP |
| benefit is the exemption from business-related | | | | business comparable to a relatively safe |
| taxes. An LLP business does not get taxed. Only | | | | investment. |
| the partners running the business have to pay | | | | |