Limited Liability Partnership Act (LLP) was introduced in India in the year 2008. It is a corporate body and has separate legal personality from its members and it amalgamates attributes of both companies and partnerships. This a conjunction of the provisions of both Partnership Act and Companies Act. The objective of Limited Liability Partnership is coherent. It protects the partners by providing the shield of limited liability in case of wrongful acts or omissions of the other partners. Furthermore a LLP is correlative to general partnership for the purposes of taxation which goes around with the flow – through system. A LLP provides ingenious and cost effective benefits in comparison with the other forms. This research paper elucidates on various aspects of Limited Liability Partnership regarding its emergence, nature, benefits, financial outlook and legal position as well as its loopholes to be met with.

Keywords – LLP, Liability, Partners, Business, Taxation, Companies