Distinguish between Limited Liability Partnership and Partnership firm.

S. No. Limited Liability Partnership (LLP) Partnership Firm 1. LLP is a body corporate and a legal entity separate from its partners and therefore can be sued in its own name or it can sue others in its own name without involving the partners. A partnership firm is not distinct from the several persons (Partners) who compose it. 2. It is governed by the provisions of Limited Liability Partnership Act, 2008. It is governed by the provisions of the Partnership Act, 1932. 3. Partners of LLP would have limited liability i.e., they would not be held liable beyond the money contributed by them. Partners of Partnership firm would have unlimited liability. 4. Retirement or death of a partner would not dissolve the LLP. Retirement or death of partner would dissolve the Partnership Firm. 5. LLP is formed by an incorporation of document and agreement to give it a legality and compulsory registration. Partnership firm may be formed either orally or by a deed of agreement, whether registered or not. 6. A minimum of 2 partners will be required for formation of an LLP. There will not be any limit to the maximum number of partners. A minimum of 2 partners will be required. Maximum Number of Partners will be 50. 7. Properties of the LLP are not property of individual partners. Properties of the Partnership Firm are properties of individual partners comprising it. 8. Individual partner can enter into business transactions with LLP as the LLP is a separate legal entity by itself. In Partnership Firm an individual partner is not allowed to enter into business transactions with the firm in which he is a partner.