Limited liability partnership in India was introduced through the LLP Act, 2008. The basic concept behind adopting LLP was to provide a structure that is easy to maintain and reduces the liability as compared to a sole proprietorship structure. LLP combines the advantages of both the Company and Partnership firm into a single form of organization and offers a hybrid structure. Hence, conversion of sole proprietorship into LLP is a good business decision. Under LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. LLP also provides limited liability protection for the owners from the debts of the LLP. Therefore, LLP is preferred mostly by Professionals, Micro and Small businesses that are family-owned or closely-held.