What is a limited liability partnership?

A limited liability partnership (LLP) is a business structure that combines the limited liability of a corporation with the flexibility of a traditional partnership. In Missouri, an LLP is created by filing articles of organization with the state and paying the state-required filing fees. In an LLP, the partners have personal liability protection, meaning if the business is sued or incurs debts, partners will not be held personally liable. This is a major advantage to LLP’s in comparison to general partnerships where the partners’ personal assets are at risk in the event of a lawsuit. Unlike a corporation, each partner’s rights and responsibilities are not as clearly outlined in an LLP. Each partner is treated as an individual owner of the business and has the freedom to make decisions as they see fit. LLP’s in Missouri must appoint a registered agent to receive any legal documents or notices from the state. Additionally, a partnership agreement must be created by the partners which outlines the rights and responsibilities of each partner, as well as the general course of business the LLP will pursue. By forming an LLP in Missouri, business partners can enjoy the personal liability protection of a corporation, while still having the flexibility of a traditional partnership structure.

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What is a limited liability partnership?

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