In some states, only professionals (required to have licenses to do business) are allowed to form a Limited Liability Partnership and, in addition, some states have special insurance requirements. Limited Liability Partnerships are similar to LLC’s. While partners are personally liable for their own negligent or wrongful acts when performing services for the partnership, they are protected by their limited liability from any personal liability for the acts of others as well as the debts and business obligations of the business although in some states this protection is less than the protection they would receive under LLC’s or corporations. Protection of partners’ personal assets is one of the major advantages of an LLP.
Why Form an LLP?
While an LLC or S Corporation is likely a better choice, some businesses previously prohibited from forming those forms of business now select a Limited Liability Partnership to avoid the higher cost of transferring from an existing general partnership to an LLC or S Corporation.
MaxFilings can help you form your LLP.
Some Points to Consider When Forming an LLP