Business Structure Comparison — Sole Prop vs LLP vs Pvt Ltd vs OPC
Interactive comparison of all Indian business structures — Sole Proprietorship, Partnership, LLP, Private Limited Company, and OPC. Compare liability, tax, compliance, funding, and cost side-by-side to choose the right structure.
Select entities to compare (choose 2–5):
| Parameter | Sole Prop | LLP | Pvt Ltd |
|---|---|---|---|
| Minimum Members | 1 person | 2 designated partners | 2 directors, 2 shareholders |
| Maximum Members | 1 only | No limit | 200 shareholders |
| Separate Legal Entity | No — owner and business are same | Yes — LLP is separate legal entity | Yes — company is separate legal entity |
| Parameter | Sole Prop | LLP | Pvt Ltd |
|---|---|---|---|
| Personal Liability | Unlimited — personal assets at risk | Limited to LLP contribution | Limited to share capital |
| Business Debts Liability | Owner personally liable for all debts | LLP liable; partners not personally | Company liable; directors not personally |
| Parameter | Sole Prop | LLP | Pvt Ltd |
|---|---|---|---|
| Tax Rate | Personal income tax slabs (up to 30%) | Flat 30% on LLP income + surcharge | 22% (existing) / 15% (new mfg) |
| Dividend Distribution Tax | No dividend tax — profits are personal income | No — partner share not taxed again | Dividend taxable in shareholder's hands |
| Parameter | Sole Prop | LLP | Pvt Ltd |
|---|---|---|---|
| Best For | Freelancers, consultants, micro businesses | Professional firms, medium businesses, service sector | Startups, funded businesses, product companies |
| Recommended If | Turnover < ₹20L, no liability risk, testing idea | Professional services, liability protection, simple structure | Raising funds, building a team, long-term scalability |
Note: This comparison is for educational purposes. The ideal structure depends on your specific business model, risk appetite, funding plans, and tax situation. Consult a CA or CS before making a final decision.
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