Disadvantages of Forming LLP Limited Liability partnership

Posted on 05-05-2016        By ADMIN

LimitedLiability partnership
Disadvantages of FormingLLP

1. Any act of the partner without the partner may blind LLP.
2. Under some cases, liability may extend to personal asset of partners.
3. Cannot raise money from public.
4. Not easy to dissolve or wind up as compared to partnership firm.
5. For change in address, change in partners, change in shares of partnersagreement LLP required to be altered for every time.
6. There is a lack of privacy, financial statements are required to be fileunder Section 34 of the Act.
7. Legal uncertainties -as a newly introduce concept it is yet to set itsentire inclusive and iclusive areas.


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