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Startup ComplianceVerified on 2026-06-12

Sole Proprietorship vs LLP vs Private Limited Company

Compare legal liabilities, registration costs, tax slab rates, and yearly compliance for entity structures.

By Ranjeet KumarReviewed by CA S. Sharma (Partner)Updated 2026-06-12

Sole Proprietorship vs LLP vs Private Limited Company

Choosing the correct business entity affects liability and compliance requirements.

Comparison: - **Proprietorship**: Easiest to start, low compliance, personal liability. - **LLP**: Limited liability, lower audit compliance, requires agreement filings. - **Pvt Ltd**: Limited liability, easy to raise funding, higher compliance costs (auditors, filings).


Disclaimer

Tax rules, thresholds, and calculations are estimates subject to regulatory changes. Always verify information on the official Income Tax or GST portals, or consult a qualified Chartered Accountant before final filing or payment.

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© 2026 CAConnect. Built for clearer financial action.Tax outputs are estimates. Verify high-risk actions with a qualified professional.