LLP is governed by Limited Liability Partnership Act of 2008. LLP allows members to retain flexibility of ownership (similar to Partnership Firm) but provides a liability protection. The maximum liability of each partner in an LLP is limited to the extent of his/her investment in the firm. An LLP has its own Permanent Account Number (PAN) and legal status.
LLP also provides protection to partners for illegal or unauthorized actions taken by other partners of the LLP. Unlike general partnership this kind of partnership does not get terminated by the death or insolvency of the limited partners.