6. Who benefits the most in a LLLP and why? (12pts).

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Expert Solution

Limited Liability Partnership (LLP):

This is the partnership form of business where liabilities of partners are limited.

There are so many benefits in LLP – like easy formation compare to a company, separate legal entity compare to other forms of partnership, partnership of a partner (ownership) could be transferred (which is not possible in other forms of partnership), the business can continue endlessly without any interruption (like death of a partner), etc.

But, the most benefit in LLP is enjoyed by the partners. Their liabilities are limited up to the extent of their investments (such as investment in capital). There is no personal liability in case of failure of the business – the court cannot take personal property of those partners if required. Therefore, partners in LLP looks like the same as shareholder of a company. Partners in other forms of partnership business do not enjoy such benefit either.

Rahul Sunny answered 1 year ago

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