A Limited Liability Partnership is a much more progressive business model than a regular partnership In LLP, partners need not to be worried about personal liabilities and they are not disadvantaged by it.LLP does not have to deal with the excessive regulations of the Indian Partnership Act, 1932. Moreover, there are various benefits related to tax, no audit requirements below a certain capital, no limitation regarding number of partners or capital contribution requirements.
On growing businesses need to lend money frequently. Partners have the personal liability for all this debt in a general partnership. So, in case of non-payment of debt by the business, the partners made to pay this debt by selling their personal assets. In an LLP, personal assets of the partners are safe and only the amount invested in starting the business will be lost under any circumstances.
You need to file audited annual returns in LLP only if turnover exceeds Rs. 40 lakhs or capital contribution of over Rs. 25 lakhs. Also,it requires to communicate less business transactions and structural changes than a private limited company.