In an LLP, partners enjoy limited liability protection, which means their assets are safeguarded from the business's debts and obligations. This protection is ensured by the structure of the LLP itself, where the liability of each partner is limited to their agreed contribution to the partnership. This is unlike traditional partnerships where partners can be personally liable for business debts. By clearly defining the terms of the LLP agreement, partners can outline the extent of their financial commitments and responsibilities, further ensuring protection against personal liability.
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5. How can partners protect their liability in an LLP?
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- 3+ months ago by Shabanare...
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- protect, partners
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