LLP was started in India under the “Limited Liability Partnership Act, 2008” which states that partners are not liable for others’ misconduct. LLP is preferred by “experts, Micro and Small businesses” that are family-owned or are closely held.

Limited Liability partnership provides the advantage of limited liability to its proprietors and at the same time needs essential care. The proprietors of a private limited company have limited responsibility to creditors. In case of failure, banks/creditors can just sell the organization’s assets and not the individual assets of directors.