Prepare limited liability partnerships (also known as LLP) offer many advantages and some disadvantages too. Before you make a final decision, carefully weigh the pros and cons of this unique business setting. Keep in mind that partnerships join two or more together in business relationships. Every partner in the business has an obligation for business debt and also for its benefit. Every partnership must be regulated by a written agreement compiled by a lawyer so that all members of the partnership are protected if there is an unexpected situation.
Some of the main advantages of limited accountability partnerships are that new ideas routinely shared among LLP members. Sharing ideas will likely increase corporate income potential and make it more successful and profitable in the long run. Another advantage is that initial capital investment is likely to be higher because more people are available to invest their money. Finally, LLP eliminates part of the personal responsibilities of each partner, making it much different and more interesting than single ownership and other types of partnerships.
Of course, there are also losses from limited responsible partnerships. New business strategies may be more difficult to implement if there are more than one person in the partnership team. And, it is possible that various opinions can arise, causing no different number of LLP partners. Another disadvantage is that sometimes partners allow their friendship with other partners blocking work that successfully completed work. Finally, it can be the end of the partnership if one partner leaves business. This can be avoided, however, by ensuring that legal partnership agreements are arranged when LLP is formed.
Setting up limited responsibility partnerships is a relatively easy process. You must submit several special legal documents that can be obtained from your country’s business office. You also need to fulfill the mandate set by the state such as insurance and license requirements. You need to provide your partnership name about the legal forms that you are subject to the state. Your partnership name must include the words “limited liability partnership” or LLP. After you complete the form, send it to your country’s business office along with the registration fee needed. Your partnership will apply after you receive the notification and recognition by the state.