By Kendi Latoya
A Limited Liability Partnership combines the features/elements of a Company and the more traditional partnership, this is because it offers limited liability thus protection to its partners the same as a Company does to its shareholders.
The important features of a Limited Liability Partnership are as below:
This is an important feature of an LLP as the liability of the partners is Limited, hence a partner in the LLP is not personally liable directly or indirectly for obligations in the partnership, however individuals are liable for their own wrongful acts or omissions.This defers from the general partnerships where liability of partners is usually unlimited.
A limited liability partnership must have at least two partners and one manager. The manager must be a natural person and above the age of eighteen (18) years.
SEPARATE LEGAL ENTITY
The business usually acquires a corporate identity distinct from its members. This is a great advantage over the general partnership as it can enter into contracts in its own name, hold property in its own name and it can sue and be sued in its own name. The death or exit of a partner does not affect the existence of the Limited Liability Partnership.
Taxation in a Limited Liability Partnership is usually on an individual level and not the entity level hence the members in a Limited Liability Partnership are deemed self-employed and hence each partner will declare their profit and pay tax on their share of profit.
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