Starting a Limited Liability Partnership
--The Basics

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Have you considered starting a limited liability partnership? Limited liability partnerships have certain characteristics which differentiate them from general partnerships and limited partnerships.

What is a limited liability partnership?

A limited liability partnership is a partnership that provides the owners protection from personal liability for the obligations of the partnership arising out of the acts and omissions of other partners. Unlike partnerships and limited partnerships, limited liability partnerships have the advantage that they provide for limited liability of all members...there is no general partner who stands liable for the actions of the partnership.

How do I go about forming a limited liability partnership?

It can be formed only by complying with the requirements of your state partnership statutes, or laws. Generally you must file with the state and have a partnership agreement (although most states do not require the partnership agreement to be in writing).

Advantages:

* partners are not liable for the obligations of the LLP arising from negligent or wrongful acts of another partner

* no general partner taking on all liability for the business

Disadvantages

* partners are liable (jointly and severally) for the obligations of the LLP

* no centralized management

* ownership not transferable at will, must have consent of other partners

Although the information here is generally accurate, it is important to note that every state has different requirements for business formation of any business type-sole proprietor, partnerships, corporations and LLC’s. Consult with your state’s laws or an attorney to ensure that you are following the proper procedures for creating a limited liability partnership.

Starting a Limited Liability Partnership vs. Limited Partnership
Learn more.

Learn about General Partnerships.

Creating Strategic Partnerships for Multiple Income Streams -- Learn More!

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