Hey @SlickNick
The field ‘Total contribution received by all the partners’ indicates the capital contribution brought in by the partners of the LLP and not the profit.
Hope this helps!
Yes, thank you for your prompt reply
I have a query, what are the details required of partners who are also directors of companies abroad
Hey @farheen_feroz
The documents required of the designated partners of the proposed LLP do not change even if they are a director in a foreign company. Hence, the documents required are as under:
- Self attested copy of PAN and Aadhaar card
- Self-attested copy of proof of identity and proof of residential address
- Consent to act a partner of LLP in Form-9
- Passport-sized photograph
- Other basic details like email ID, mobile number, educational qualification, etc.
You can learn more about the details required to file the forms here
Hope this helps!
Whether it is mandatory to attach Balance Sheet and Profit and Loss if LLP does not cross 40 lakh and 25 lakh limits?
Hello @Heer_Mandaliya
It is only mandatory to attach a disclosure under Micro, Small and Medium Enterprises Development Act, 2006 and in case the contingent liabilities exist, Statement of contingent liabilities is to be attached.
Any LLP, whose turnover does not exceed, in any financial year, forty lakh rupees, or whose contribution does not exceed twenty five lakh rupees, is not required to get its accounts audited.
You can read more about LLP Form 8: Statement of Account & Solvency here
You can also read about procedure to file LLP Form 8 here
Hope this helps!
Can I incorporate a new LLP just for the purpose of proprietary trading in listed securities (stocks, derivatives, currency, commodity, bonds, mf etc.) using own funds of only 2 designated partners with no external funding or money raising?
I will be doing prop trading by opening account with broker and not as alpha member.
If yes, what will be its business activity and code to be mentioned during the filing of incorporation form?
It would be of much help if someone from @TeamQuicko could provide some info regarding this. I have tried many places but most local CA don’t have any idea regarding this. And many other forums are also of no help as I got no clear info.
@Aishwarya_Shah @Kaushal_Soni @Saad_C can you help with this?
Hello there!
We are 3 members planning to form a business. Please guide how shall we begin? Registering with LLP or Partnership firm? Initially starting with 10 Lakhs.
Big question is, let’s say, profits earned around 9 lakhs per annul. How Income tax levied ? 30% on total profits earned through company.
Or 9 lakhs divided to 3 partners which is 3 lakhs on each partner? How tax division works?
@Anar_Desai, can you take a look into this.
Hey @shashidhar_redd ,
There are some basic differences between LLP and Partnership Firm. LLP has separate legal entity whereas a partnership firm has no separate legal status apart from his partners. The LLP is required to maintain and audit books of accounts if turnover and capital contribution overreaches 40 lakhs and 25 lakhs respectively under the LLP Act. You may read more about it here.
Further, Income Tax at a flat rate of 30% is levied on Partnership Firms and LLP’s. The share of the partners in the total income of the firm is exempt in the hands of the partners. Losses of the firm are carried forward and not allowed to be allocated to the partners.
So, if 9 lakhs are earned, then the entity will pay the tax and then the amount will be distributed among partners.
LLPs cannot claim benefit of 44AD by using presumptive taxation. Partnership Firms can claim this benefit.
Hope it helps.
2 Likes
Hi,
I’m partner in LLP . I need to provide details about LLP under “Schedule IF”. How do I do that in Quicko?
Hey, currently we do not support income from LLP on our platform. However, it is in our pipeline and we will keep you posted regarding the same
Ah… ok. how can I complete my return filling process then? Can you help me on this?
Hey, you can prepare your ITR on Quicko and download the JSON. You can then make changes to it through utility. Hope this helps
Hello Quicko Team,
If I have a limited income of around 20L from my consulting, should I form
a. LLP
b. Properiotership
c. OPC
so that I pay least tax
I am anyways singlehandedly managing operations and can use my mother’s name / Wife’s name as nominee or partner or director.
My focus is:
a. Pay least tax.
b. Manage home loan.
Hey @Punit_T
For taxation purposes, the applicable tax rates for each option are as follows:
a. LLP (Limited Liability Partnership) - Income from an LLP is taxed at a rate of 30%.
b. Proprietorship - Income from a proprietorship is taxed according to the individual income tax slab rates applicable to the owner.
c. OPC (One Person Company) - Income from an OPC is also taxed at a rate of 30%.
You can calculate your tax liability for each option and make your decision accordingly.
If you require further assistance, consider consulting a tax expert.