Accuprosys is a boutique business Consulting firm headquartered in Hyderabad. We provide end to end Consulting business Solutions to various corporates across mid market segments in India. Over the years, we have supported several organizations to emerge as successful business entities by keeping pace with their day to day business requirements. Accuprosys understands and upholds that each segment has its own requirements, our unique consulting expertise with decades of experience and knowledge base across various disciplines makes us the best option to help our clients to increase the productivity and organizational growth with a less turnaround time.

1. LLC, Pvt., Inc. et al...
Difficult To Decide the
Right Incorporation?
- We Get You Their Advantages And
Disadvantages To Help You Decide.
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2. Whether or not to get a company incorporated
is a big question in itself. That coupled with
which kind of incorporation is best for the
company, makes it an even bigger question.
If you don’t choose the right one for your company,
you might scream out “HELP!” sooner than you think.
A freaky picture indeed!
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3. If you are still in the indecision-state, we get you the
advantages and disadvantages of several
incorporations to help you walk the tightrope (and
we’ll be brief for that matter)!
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4. While choosing which type of incorporation is best
for you, you need to be clear about your ownership
structure (number of business owners, whose assets
are at stake, etc.),
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5. The nature of your business
(what products are sold,
what is the target market,
etc.),
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6. Your tactics to raise
investments (whether from
bank credits, angel
investors, etc.), the type of
tax classification that will
work best for your company.
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7. 1. Private Limited
Company
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8. Advantages of Private
Limited Company
O Its members have limited liability.
O It will continue to exist even after all its
members desert it or die.
O It has less legal restrictions.
O It can utilize surplus funds available in its
business by making a loan or investing
them in the shares of another company.
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9. Disadvantages of Private
Limited Company
O The shares allotted to members are not
freely transferable between them.
O The company cannot invite the public to
subscribe to its shares.
O There is a high possibility of undemocratic
control.
O Such a company has scope for
promotional frauds.
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10. 2. Public Limited
Company
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11. Advantages of Public
Limited Company
O It will continue to exist even after all its
members desert it or die.
O It has a larger amount of capital.
O Its members have limited liability.
O Management is efficient.
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12. Disadvantages of Public
Limited Company
O The company is subject to strict
regulations.
O There is scope for promotional frauds.
O There is a high possibility of undemocratic
control.
O Directors may be biased towards making
personal profit.
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13. 3. Partnership Business
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14. Advantages of General
Partnership
O It is easy to establish.
O All partners of the business can contribute
towards managerial and financial
strengths of company.
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15. Disadvantages of General
Partnership
O The partners are at risk of unlimited legal and
financial liabilities.
O Partners are likely to commit the business to
liabilities or obligations without approval from
other business partners.
O The business will cease to exist upon death of
a partner.
O The liability incurred by one partner makes all
other partners vulnerable to liabilities and
seizure of personal and business assets.
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16. 4. Limited Partnership
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17. Advantages of Limited
Partnership
O The assets can be protected from seizure
even if one partner loses a lawsuit.
O All partners are protected from liability.
O Profit made by the business is reported on the
personal tax returns of the partners.
O There is no cap of the amount of money
garnered by the partners from the business.
O An LP can own property, sue, and be sued
because they have the status of being a
separate legal entity.
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18. Disadvantages of Limited
Partnership
O A large amount of legal documentation is
required during this incorporation.
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19. 5. Limited Liability
Partnership (LLP)
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20. Advantages of LLP
O It provides legal framework to the initiation of the
business.
O Partners are protected from liability of the company
as their liability depends on the amount of their
invested capital.
O This incorporation is more tax advantageous than
a private company.
O It is not required to set up a termination date for
the partnership agreement.
O Dividends paid to the partners of the business are
reported on their personal tax returns.
O An LLP can own property, sue, and be sued
because they have the status of being a separate
legal entity.
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21. Disadvantages of LLP
O The Limited Liability Partnership requires
more legal documentation than say a
General Partnership due to its’ status as a
legal entity
O The business is considered dissolved
when the Limited Liability Partnership
loses a partner
O In some states only professionals, such as
attorneys, architects and accounts may
use this type of entity.
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22. 6. Sole Proprietorship
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23. Advantages of Sole
Proprietorship
O There is minimal documentation required.
O It is easy to form.
O There are very few legal restrictions.
O Dissolution of the business is easy.
O The income is reporter on the tax returns
of the business owner.
O There is maximum incentive for work.
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24. Disadvantages of Sole
Proprietorship
O There is unlimited personal liability for
debts.
O The personal assets of business owners
are at risk in case of a lawsuit.
O The business will end upon owner’s
death.
O Raising capital for the business is a
challenge.
O The business operates on limited capital.
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