Q. What are the major disadvantages (cons/demerits) of Limited Liability Partnership (LLP)?

LLP business has many advantages but still has some disadvantages as well like:

• LLP is subject to audit and other compliances if turnover crosses the 40 lakh limit and contribution crosses the 25 lakh mark.
• Penalties under LLP have no maximum limit and hence if you forget to file any form it shall subject to penalty of Rs.100 per day.
• LLP cannot raise funding and hence not preferred for startup who are looking for funding.