Essentials Of An LLP Agreement

Selecting and registering a new business under any of the suitable business structures is a vital prerequisite for the business to operate. There are a number of business entities to choose from, and these business entities provide a separate existence to the enterprise in order to structure to the organisation and also for the purpose of taxation.

Out of the types of business entities, a Company and its various types such as a Private Limited Company and Public Limited Company are more suitable for a large business with considerable returns, while a sole proprietorship and One Person Company are for a single entrepreneur. A partnership is a good choice for a business structure, but it has a few negatives, such as unlimited liability on the partners, limited resources, and unreliability of its future, all of which make it a less favoured choice. Thus out of all the options available, the entity which is most optimum and suitable for the majority of the business types is a Limited Liability Partnership or LLP.