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PRIVATE LIMITED COMPANY vs LLP

In terms of safeguarding the personal assets from financial losses occurred during course of business, Private limited company and LLP are the best options. The following post enumerates the concept in detail. Any business owner shall think of continuity of business irrespective of the members joining or leaving the entity. The status of the entity should remain same in case of death or insolvency or bankruptcy of any member so that the interest of other members are safeguarded. Hence, Private limited company and LLP can be treated as best option that any business owner can choose. WHAT IS A PRIVATE LIMITED COMPANY? It is a form of business entity where the shares are held privately.  The shares of a private limited company CANNOT be traded in public. The liability of each member is restricted to the capital contributed. WHAT IS A LIMITED LIABILITY PARTNERSHIP? A business entity in which the partners liability is restricted to the capital contribution by them. Let us understand var...