1. Money

Limited Liability Partnership (LLP)

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Definition:

A limited liability partnership (LLP) is different from a general partnership or a limited partnership. An LLP differs from general partnership because all partners in an LLP are shielded from wrongful acts or negligence of other partners.

An LLP combines characteristics of partnerships and corporations. As in a corporation, all partners in an LLP have limited liability, from errors, omissions, negligence, incompetence, or malpractice committed by other partners or by employees. Of course, any partners involved in wrongful or negligence acts are still personally liable, but other partners are protected from liability for those acts.

In an LLP, all partners have the same general management responsibilities. Because an LLP is a partnership, the flexibility of management in an LLP is not the same as with a limited liability company.

Many professionals form LLPs, because they are protected to some degree from being involved in a malpractice suit against another partner. Most states allow all professionals to form LLP's; a few states limit the ability to form an LLP to accountants and attorneys.

Common Misspellings: Don't confuse an LLP with a limited partnership or a limited liability company.
Examples:
Three accountants formed an LLP in Ohio. Each shared in the management of the partnership and all were shielded from liability for the acts of the other partners.

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