What is a Limited Liability Partnership (LLP)?
A limited liability partnership (LLP) is formed when an existing partnership (see above) files an election with the Corporations Bureau of the Pennsylvania Department of State, claiming this status. Once this status is claimed, all partners, including general partners, are provided additional protection against unlimited future liability. Income still flows through to individual partners’ income tax forms, and the partnership still terminates on the death of a partner.
A Limited Liability Partnership is a hybrid between a partnership and a limited company. Summary Registration LLP Names Registered office Limited Liability Members Procedures Accounts and audit Taxation Limited Liability Partnership Agreements Forms Register your LLP Summary A new type of business structure became available as from April 6th. 2001 when the Limited Liability Partnerships Act 2000 came into effect. The Limited Liability Partnerships Regulations 2001 (SI 2001 No. 1090) supplement the provisions of the Act. A Limited Liability Partnership (LLP) is a separate legal entity conferring full limited liability on its members. It is created by registration at Companies House. There must be at least two members, but there is no upper limit. At least two of the members must be named as ‘designated members’, who accept responsibility for sending information to Companies House for registration, etc. An LLP is subject to the same rules as a private limited company for the registration
In Texas, a limited liability partnership (LLP) is either a pre-existing general partnership or a pre-existing limited partnership (LP) that carries a minimum of $100,000 in errors and omissions insurance or other specified financial responsibility and takes the additional and entirely optional step of registering with the Secretary of State as an LLP. Tex. Bus. Orgs. Code §§152.801 et seq. and 153.351 et seq. Filing an application for registration of an LLP does not create a partnership or any other entity. Instead, an LLP is merely an optional registration that is made by an underlying, pre-existing partnership.
A Minnesota LLP is governed by Minn. Stat. Sec. 323A.1001 and takes effect once a statement of qualification is filed with the secretary of state. The partners are still liable for debts and obligations that arose before the statement of qualification is filed. After the statement of qualification is filed with the Minnesota Secretary of State, the partners are protected from future liability for the debts and obligations of the LLP. The LLP is not recognized in all states so if your business is going to operate in states other that Minnesota you may want to consider another business form.
A. A limited liability partnership is similar to a limited liability company (LLC) in that all partners have limited liability for business debts, but in many states this liability protection is less than what LLCs receive. Further, some states limit the use of limited liability partnerships to professionals, those occupations that require a license to do business.
Related Questions
- SHOULD THE SHARED OR FRACTIONAL OWNERSHIP USE A LIMITED LIABILITY COMPANY (LLC), OR LIMITED PARTNERSHIP (LP) OR LIMITED LIABILITY PARTNERSHIP (LLP)?
- ARE THERE ANY RESTRICTIONS ON A PHYSICIAN PRACTICING MEDICINE UNDER A LIMITED LIABILITY COMPANY (LLC) OR LIMITED LIABILITY PARTNERSHIP (LLP)?
- Can an LLP, a Limited Liability Partnership decide to have unanimous voting?
