What is the difference between LLP and Partnership?

LLP means a Limited Liability Partnership. It can be regarded as a sub-form of the real partnership. The partnership is a form of business agreement in which two or more parties come together to form a business and work together to achieve a particular business goal, and both profit and loss are shared equally by all the parties or according to the agreement reached during the formation of the business.

Limited liability partnership is a type of business agreement that evolved from the standard partnership. As the name implies, Limited liability partnership means each member of the partnership will have limited liabilities to share. One of the important things about limited liability partnership is that a member will not be responsible for the loss and misconduct of another person. This means if a partner makes the wrong decision about a particular thing, it will only affect him and not other partners, and the business will still continue even if business partners are changing.

The acronym LLP stands for Limited Liability Partnership, which is a form of partnership where the Liability of the partners is limited. Limited in that, any partner will not be held responsible for the acts of other partners. General Partnership generates unlimited liabilities to the partners concerned, and so they are mutually or severally liable for the debts.

The word partnership refers to an arrangement where two or more people agree to carry on a business and share profits and losses jointly. Limited Liability is a form of business operation which combines the features of a partnership deed. Limited Liability Partnership is a business vehicle that integrates the advantage of limited Liability and the flexibility of a partnership.