The ownership of a LLP can be easily changed. A partner can be retired or admitted to the LLP anytime during the year. All you need to do is enter an agreement supplementary to its incorporation agreement, stating the terms of retiring partner or admitting partner.This terms will generally include the profit sharing ratio and increased contribution brought in by new partners.

A LLP is a legal entity and a juristic person separate from its partners established under the Act. The partners can sue the LLP or each other and get sued by the LLP.

One of the most important features of a company is the separation of the personal assets from those of the business. When someone opens a business, they want to make sure that if credit or debt issues arise or if something happens to the business that this does not impact the individual business owners. You also want to make sure that the liabilities associated with more than one owner do not impact the other owners. Separation of business and personal assets of the owners is critical.

A LLP is continued or uninterrupted existence until it is legally dissolved. It existence is unaffected by the change in ownership, retiring/death of existing partner or admission of new partner . Hence, LLP continues to until desired by all the partners.

If the turnover of the LLP is less than 40 Lakhs and capital contribution of from partners is less than 25 Lakh then LLP is not required to get its accounts audited .Therefore, LLP is ideal for the the businesses that are just starting their operations as it saves you a cost of minimum audit fees around 10,000. It shall be noted that if you are expecting turnover above 40 lakhs in the initial period of two years then it is better to formulate a private limited company.