1. Convenient :-
It is very easy to establish a Limited liability partnership, as it's agreement are customized according to the needs of the partner concerned. There are very few formalities in the area of legal compilation, as compared to any other private limited company.
2. No minimum capital :-
In order to start a limited liability partnership, there are no minimum capital requirements, Capital may be in the form of tangible, movable asset like Land, machinery or intangible form, one can start a LLP with any amount of capital.
3. Low Registration cost :-
The cost of registration incurred by an individual while establishing a LLP is low as compared to any other private limited company.
4. Dividend Distribution Tax (DDT) not applicable :-
If partners withdraw profit from the company, there will be no DDT chargeable on the amount, where as in case of other companies a charge as defined in Income Tax Act, 1961 is imposed on profit withdrawal from the firm.
5. Separate Legal Entity :-
LLP is a separate legal entity apart from their partners or owners.
6. Never Ending Firm / Going Concern :-
A LLP has a benefit over general partnership that a LLP will continue the business being perpetual succession even after the retirement or death of one or more partners.
7. Limited Liability :-
As name suggested, every members of the firm has limited liability against any losses of the firm. This means partners’ personal assets is fully safe and will not be attached in case of any misconduct by any of the partners.