Pvt Ltd Company and LLP both are limited liability structures. However, companies offer certain key advantages, especially for startups. Ownership of the company is defined by share capital, which is easy to transfer compared to ownership transfer in LLP. Also, it clearly differentiates management and ownership. Hence, it is preferred by VCs, angel investors and banks for providing debt or equity funding.

However, one should also consider higher compliance and mandatory audit requirement, making it an expensive structure to maintain.