Both the entities are functioning in similar way with respect to the compliance and operational requirements. As these both entities recognized as a separate legal entity than partnership, it can contract or involve in any legal proceedings in its own name, which enables partners of an LLP to separate business liabilities or debts being recovered from their personal assets. Compliances are a little more compared to normal partnership firm in Limited Liability Partnership. While compared with Private limited company, it’s easy to incorporate and maintain.

Ownership transfer of a Limited Liability Partnership is not as easy as of a Private Limited Company. Neither an LLP can issue ESOP, there for startups planning for a huge expansion, seek seed investor or venture capital funding or issue share capital to its employs, won’t really be courageous to go with LLP registration.