Proprietorship vs LLP vs Pvt Ltd Comparison
Side-by-side legal comparison across taxation, liability, compliance & funding.
| Feature | Sole Proprietorship | Limited Liability Partnership (LLP) | Private Limited Company (Pvt Ltd) |
|---|---|---|---|
| Legal Status | No separate identity | Separate Legal Entity | Separate Corporate Entity |
| Owner Liability | Unlimited Personal Liability | Limited to Capital | Limited to Shares |
| Income Tax Rate | Individual Slabs (up to 30%) | Flat 30% (+ Cess) | 22% (+ Cess) |
| Startup Funding | ❌ Not Eligible for VC/Angel | ⚠️ Difficult | ✅ 100% Ideal for Equity Funding |
| Annual Audit | Only if turnover > ₹1 Cr | Turnover > ₹40L or Capital > ₹25L | Compulsory Every Year |