What is Limited Liability Partnership (LLP)?
A Limited Liability Partnership (LLP) is a type of business where two or more people work together as partners, but with a big advantage — their personal money is protected. In a regular partnership, if the business has debts or losses, partners may have to pay from their own pockets. But in an LLP, each partner’s risk is limited to the amount they invested in the business.
An LLP is treated as a separate legal person, which means it can own property, sign contracts, and be taken to court — just like a real person. If the business runs into trouble, only the LLP’s money is used to cover it, not the personal savings of the partners.
It also gives flexibility. Partners can decide how to manage the business and share profits, and they don’t need to follow as many formal rules as companies do. That’s why LLPs are popular among professionals like lawyers, accountants, and consultants who want to work together and protect their personal assets.
