A Limited Liability Partnership (LLP) is a modern business structure that combines the advantages of a partnership and a private limited company. It is governed by the Limited Liability Partnership Act, 2008 in India. In an LLP, partners have limited liability, meaning they are liable only to the extent of their agreed contribution, and not personally responsible for the firm’s debts or wrongful acts of other partners. LLPs are commonly used by professionals, startups, and small businesses due to their flexible structure and legal protection.

Difference Between LLP and Traditional Partnership – In Points:
1. Governing Law:
LLP: Limited Liability Partnership Act, 2008
Partnership: Indian Partnership Act, 1932

2. Legal Status:
LLP: Separate legal entity
Partnership: No separate legal entity

3. Liability:
LLP: Limited liability of partners
Partnership: Unlimited and joint liability

4. Registration:
LLP: Compulsory with MCA
Partnership: Optional

5. Perpetual Succession:
LLP: There is perpetual successsion in an LLP as it follows a company sturcture as well
Partnership: No perpetual succession

6. Minimum Partners:
LLP: Minimum 2, no upper limit
Partnership: Minimum 2, maximum 50

7. Audit Requirement:
LLP: Only if turnover > ₹40 lakh or contribution > ₹25 lakh
Partnership: Not mandatory unless specified

8. Transfer of Ownership:
LLP: Easier, with agreement
Partnership: Difficult without dissolving the firm

9. Taxation: Both taxed similarly, but LLP enjoys lower compliance burden

A Limited Liability Partnership (LLP) is a business structure where partners have limited liability, meaning they are not personally responsible for the firm's debts. In a traditional partnership, partners have unlimited liability and can be held personally liable. LLP is also a separate legal entity, unlike a partnership.

A Limited Liability Partnership (LLP) is a business structure where partners have limited liability, meaning they are not personally responsible for the debts of the business beyond their agreed contribution. It is governed by the Limited Liability Partnership Act, 2008.

In contrast, a traditional partnership is governed by the Indian Partnership Act, 1932, where partners have unlimited liability and can be held personally liable for the firm’s debts.

Key differences:
LLP is a separate legal entity, has limited liability, requires registration with the Ministry of Corporate Affairs, and offers more flexibility with less personal risk. A regular partnership is not a separate entity, has unlimited liability, and is easier to form but riskier for partners.