What are the advantages of a limited liability partnership (LLP)?

A Limited Liability Partnership (LLP) has many of the same characteristics as a general partnership. However, there is one important advantage to the LLP business model. If a partnership is formed as an LLP then each partner is only personally liable for his or her own negligence or for the negligence of an employee under that partner’s direct supervision. So, if for example, the partners formed an accounting firm and one of the accountants is found guilty of malpractice then only the accountant who committed the malpractice would be personally liable for the damages that incurred as a result of his actions. It is important to note, however, that this limited liability does not extend to business debts which all partners would share in equally regardless of which partner was responsible for incurring the debt.

Speak to an Experienced Business Law Attorney Today

This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified business lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local business attorney to discuss your specific legal situation.

Additional Business Law Articles

Search LawInfo's Business Law Resources