What is a limited liability partnership?

A limited liability partnership (LLP) is a type of business formation law in Illinois. It is a business structure that allows two or more individuals to run a business together while limiting their personal liability. The partners share the profits, losses, and management of the partnership. An LLP offers members legal protection from claims against the business. In other words, each partner’s personal assets are protected from claims made against the partnership. This means that if the business gets sued, the partners’ own personal assets will not be at risk. To form an LLP, the partners have to file a registration document with the Illinois Secretary of State. This document outlines how the business will be operated, including the responsibilities of each partner and how profits and losses will be distributed. LLPs are popular among professionals like lawyers and doctors since they offer personal asset protection. In addition, both partners have the freedom to manage the business as they see fit without needing the other partner’s approval. Overall, an LLP is an attractive option for businesses in Illinois due to the various benefits it offers. It provides partners with personal asset protection while also offering more freedom to manage the business.

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What is a limited liability partnership?

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