- The liability of the members or the directors are limited in case of LLP whereas in case of partnership firm the liabilities are unlimited
- The LLP is more transparent structure of business as compared to partnership firm
- The benefit of startup recognition under the startup India scheme of the government of India can be availed by a LLP and not by any partnership firm.
- The LLP has a separate legal identity as compared to a partnership firm.
- The venture capitalist gets attracted to invest in a LLP.