What is a limited liability partnership?

A limited liability partnership (LLP) is a type of business formation law in California which allows partners to have limited personal liability for the actions of their partners and fellow members of the business. This means that if the business is sued or otherwise incurs debts or obligations, each partner’s liability is limited to the amount of their investment in the business. This is especially beneficial in a partnership where multiple partners control the business. LLPs are often used in professional partnerships, such as those between attorneys, dentists, and engineers. LLP structures allow businesses to operate like a corporation, with certain features of a partnership such as having separate legal status, taxation, and limited liability. This type of business structure also offers some degree of protection to partners from the debts and liabilities of the firm. Ultimately, a limited liability partnership is a type of business formation which offers partners some limited personal liability protection while still maintaining the features of a partnership. This makes it ideal for businesses where multiple partners have a stake in the success or failure of the business.

Related FAQs

What is a buy-sell agreement?
What is a limited liability partnership?
How do I hire employees and independent contractors?
How do I obtain a federal employer identification number (EIN)?
What is the difference between a partnership and a corporation?
How do I obtain a business loan?
What is the best legal structure for my business?
How do I set up a foreign business entity?
How do I obtain a copyright registration?
What is the cost of forming a business?

What is a limited liability partnership?

Related FAQs

Related Blog Posts