Limited Liability Registration, a prime reason why it has evolved is that of its simplicity in a formation and easy maintenance. It helps owners also to limit their liabilities. This is the biggest advantage of an LLP over a traditional partnership firm.
LLP has a blend of the benefits of a Company and a Partnership Firm namely. The limited liability feature of a company and the flexibility of a Partnership firm. No partner is liable on account of un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s misconduct. LLP form of organization is usually preferred by Professionals, Micro and Small businesses that are family owned or closely-held.