Question: Is It Good To Work In LLP Company?

Why is LLP better than company?

It offers limited liability, offers tax advantages, can accommodate an unlimited number of partners, and is credible in that it is registered with the Ministry of Corporate Affairs (MCA).

At the same time, it has fewer compliances than a private limited company and is also significantly cheaper to start and maintain..

Is LLP a good idea?

LLP may be a combination of traditional partnership or a limited company but it is still regarded as partnership. So, customers see it as a partnership and not as a company which in itself is a big disadvantage. Compliance under LLP is very limited and is a well reckoned fact.

How does an LLP get taxed?

An LLP is taxed like a general partnership. The partnership reports business income and expenses on a partnership tax return, and each partner in turn reports a share of the profits or losses on his or her personal return. … The profits “pass through” to partners who pay tax at their individual income tax rates.

Can husband and wife form LLP?

Husband and Wife LLP Husband and wife can be designated partners in an LLP. There is a special agreement pertaining to tax liability that can be made so as to minimize the family tax liability.

Is tax audit compulsory for LLP?

Tax Audit of the accounts is mandatory for an LLP with annual turnover of Rs 100 lakh or more. (upto FY 2019-20). However, from 2020-21, it would be applicable for turnover above 500 Lakhs. … If an LLP’s turnover doesn’t exceed Rs 40 lakh it doesn’t require LLP Audit and the due date to file the income tax is 31st July.

Is LLP a firm or company?

LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

Can LLP take loan from outsiders?

Yes, Limited Liability Partnership ( LLP) take a loan from partner. … As per LLP Act 2008 there is no restriction on to accept loan from Partner. Partner can decide to give loan to LLP on interest. Interest should be charged according to market loan rates.

How much does an LLP cost?

Government Fees / Cost for LLP registration: 1 lakh Rs. 500/- Limited Liability Partnership whose contribution exceeds Rs. 1 lakh but does not exceed Rs.

Is GST compulsory for LLP?

Business Registration Before obtaining the GST Registration, the required business entity registration is required to be obtained except the case of Sole Proprietorship, The business to be registered as Partnership or One Person Company (OPC) or Limited Liability Partnership (LLP) or as Private Limited Company.

Is partnership better than LLP?

Technically, a Limited Liability Partnership has many advantages. In fact, it would not be wrong to say that an LLP combines some of the advantages of a Private Limited Company with some of the advantages of a simple Partnership. … 15,000 just to register the simple Partnership.

What are the benefits of an LLP company?

Benefits of an LLPLimited liability protects the member’s personal assets from the liabilities of the business. LLP’s are a separate legal entity to the members.Flexibility. … The LLP is deemed to be a legal person. … Corporate ownership. … Designate and non-designate members. … Protecting the partnership name.

Which is better LLP or private limited company?

LLPs combine the operational advantages of a Company as well as the flexibility of Partnership Firms. The fee for incorporation of an LLP firm is very nominal as compared to that for Private Limited Company. The compliance requirements for an LLP are significantly lower than those for a private limited company.

How much tax does an LLP pay?

LLP is liable to pay tax at the flat rate of 30% on its total income. Surcharge: The amount of income-tax (as computed above) shall be further increased by a surcharge at the rate of 10% of such tax, where total income exceeds one crore rupees.

Does LLP need to file tax return?

The LLP, as a Partnership are not a taxable entity. Rather, all of the Partnership income flows through to each Partner based on the % of their Partnership interest and the tax is paid by the individuals. However, the entity is still required by the US law to file a US Partnership Tax Information return annually.

What is the minimum capital required for LLP?

No. There is no minimum amount prescribed to form an LLP in India. It can be started with any amount of capital demanded by the business. Although there is no minimum requirement, every partner must make a contribution financially to form LLP.