| Benefits/Suitable For | Individual with low risk and low cost business Personal Assets Not Protected | Active Partners who assume unlimited liability and liability of sleeping partners is limited | The LLP will give the owners the flexibility of operating as a partnership whilst giving them limited liability. It combines the benefits of a partnership with those of private limited companies. | For those who foresee their business going places, who need equity partners, funding and recognition and wish to eventually go public |
| Disadvantages | Personal Assets Not Protected | Active partners have joint and unlimited personal liability for all of the company's debts and liabilities | Less Recognised compared to a Private Limited Company | Continuing Compliance Obligations eg Financial Reports, AGMS, etc |
| Ownership | Foreigners & Corporations (with local manager) and Singapore Residents | Foreign or local individuals, a local company, a foreign company or another LLP But must have one Manager who is a Singapore Resident | Foreign or local individuals, a local company, a foreign company or another LLP But must have one Manager who is a Singapore Resident | Can be 100% foreign or locally owned but needs a Singapore Resident Director |
| Separate Legal Entity | No | No | Yes | Yes |
| Cap on Number of Members | One | No | No | Yes, max 20 For Exempt Companies |
| Minimum Setting up Requirement | One | At least 2 partners, one must be an active partner | At least 2 partners | 1 shareholder and 1 director (both can be same) |
| Limited Liability | No | Only for limited partners | Yes | Yes |
| Need for Audited Accounts | No | No | No | Yes, for turnover above S$5 Million or Non Exempt Companies |
| Tax Treatment | Same as Personal Income tax | Partners taxed according to their personal income tax rate | Partners taxed according to their personal income tax rate | Taxed at the corporate level, First S$100,000 of net income each year is tax free and the next S$200.000 will be taxed at 8.5% for new Exempt Companies for first 3 years. Dividends are tax exempt. |
| Cessation of Business upon Death of a Member/Partner | No | No | No. The LLP will continue to exist | No. Equity shares go on in perpetuity |
