The limited liability partnership (
LLP), by American definitions, is similar to the
limited liability company, differing only in that the LLP is designed more for
professionals who normally do business as partners in a
partnership. This is generally the same business structure as the
general partnership, with the benefits of the
limited liability company's limited liability of the partners.
The advantages:
The disadvantages:
- There is an organizational fee required.
- This a relatively new form of business organization, so not all states are uniform on how to treat the entity and the laws have yet to be standardized for the LLP.
- Many states only allow LLPs for professionals (thanks sekicho).
Back to Business Organizations.