A Limited Liability Partnership (LLP) is a partnership structure that protects each partner from personal liability for the actions of the other partners. It’s often used by professional service businesses.

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Key Benefits

• Limited liability protection for each partner

• Flexibility in management and profit sharing

• Pass-through taxation (profits taxed only once)

• Easier to raise capital with multiple partners involved

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Operating Rules

• Must file LLP registration with the state

• Requires at least two partners

• Partners must maintain compliance with state regulations

• Some states restrict LLPs to professional services (law, accounting, consulting, etc.)

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Common Uses

• Law firms, accounting firms, consulting groups

• Professional practices that want shared liability protection

• Partnerships where multiple professionals collaborate