What Is A Limited Liability Partnership ?  

A limited liability partnership is very similar to the general partnership with a few exceptions. The difference is that the limited liability partnership provides some security and protection against debts and losses in the partnership unlike general partnership.

When the business is in debts, the personal properties of the limited liable partner are not touched. They basically get away almost Scott free. The limited liable partner cannot be used for negligence or any such thing. However, how far the partner is liable depends completely on the contract. However, despite being a limited liable partner that does not mean they can behave irresponsible towards the business and get away when they are involved in their mistake., the protection is limited to liabilities and debts and not responsibilities.

A LLP can be signed in any kind of business. There is also PLLP or professional limited liability partnership. This type of partnership is exactly same as the LLP and it is applicable to professionals only. Also, different states in the United States have some modified rules applicable to LLP and PLLP. Only attorneys would be able to draft an exact agreement based on LLP or PLLP. Several people like attorneys, doctors, architects, dentists, accountants and engineers sign this kind of agreement. For example, doctors would prefer the PLLP because of the number of malpractice cases that come up and they can become personally liable. When they have a PLLP their interests are safeguarded. However, people belonging to only certain types of professional are allowed to have LLP. Banks and financial institutions are not allowed to form LLC, LLP or PLLP.

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Definition-Of-Partnership      A partnership is a kind of business agreement where two individuals come together to conduct business. They have agreed mutually to work together and the profits or the investment is tin their respective ratios. Some partnerships are dependant on an equal partnership basis and some are minor and major. Both the partners have the right to share the profits. More..

 


 

 

 
   
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