What to choose?? LLP or Private limited company??

04.03.21 11:19 AM 0 Comment(s) By CA Raksha Agarwal

Ok,so are you starting a new business?? But are confused which form among the two is better??

Let us find out !

First let us understand each of the two:

1.Private limited Co-A Private Limited Company is a company which is privately held for small businesses. The liability of the members of a Private Limited Company is limited to the amount of shares respectively held by them. Shares of Private Limited Company cannot be publicly traded.

2.LLP-A Limited Liability Partnership means a business where minimum two members are required and there is no limit on the maximum number of members. The liability of the members of an LLP is limited.

Now that you know the both forms of business,let us compare it vividly!

Pvt. Ltd. Co. and LLP have a lot of similarities yet they both are different in many of its characteristics and structures. If you are an entrepreneur who needs external funding and are aiming towards good turnover, a Private Limited Company is a perfect business structure for you.. While in case you are more than one person who wishes to start the business together with limited liability than Limited Liability Partnership is for you.

Want to contribute article?

// This sample code will make a request to LinkedIn's API to retrieve and print out some // basic profile information for the user whose access token you provide. const https = require('https'); // Replace with access token for the r_liteprofile permission const accessToken = 'YOUR_ACCESS_TOKEN'; const options = { host: 'api.linkedin.com', path: '/v2/me', method: 'GET', headers: { 'Authorization': `Bearer ${accessToken}`, 'cache-control': 'no-cache', 'X-Restli-Protocol-Version': '2.0.0' } }; const profileRequest = https.request(options, function(res) { let data = ''; res.on('data', (chunk) => { data += chunk; }); res.on('end', () => { const profileData = JSON.parse(data); console.log(JSON.stringify(profileData, 0, 2)); }); }); profileRequest.end();

What to choose?? LLP or Private limited company??

CA Raksha Agarwal

Comments