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LLP

Limited Liability Partnership

Also known as limited liability partnership

A business structure where partners share ownership but are not personally responsible for the business debts. Cheaper to run than a company, but you cannot issue shares to investors.

Example

Two consultants starting a services firm often pick an LLP because they do not plan to raise money from investors.

Related terms

Private Limited Company
The most common company structure for Indian startups. The company is legally separate from its founders, so business debts stay with the business, and it can issue shares to investors.
Incorporation
The legal act of registering your business with the government so it exists as its own entity. Until you incorporate, you and the business are the same thing in the eyes of the law.

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