Posted On: January 31, 2010
Starting a Business – Limited Liability Partnership (LLP) (Part 5 of 7)
LLPs allow for all of the partners to share in management, and in case liability arises (for malpractice or negligence only), the offending partner is personally liable. Just like any other partnership, LLPs have pass-through taxation. Forming an LLP requires a certified registration.
The advantages of the LLP are: all partners can participate in the management of the company, no personal liability on any of the individuals (with the exception of malpractice or negligence), and taxation passes through to the individual.
The disadvantage of the LLP is the mandatory state registration.
