Limited Liability Partnership (LLP)

Advantages of an LLP
  • Division of responsibilities
  • Ease of formation
  • Limited personal liability
  • Greater flexibility of action
  • Increased sources of capital
  • Incentive to key employees
  • Tax advantage by avoiding corporate income tax

Disadvantages of an LLP
  • Impermanence of existence
  • Division of control/authority
  • Difficult to find compatible partners
  • Difficult to raise additional capital
  • Owners’ salary/wage cannot be treated as expense; hence, not tax deductible