The limited liability limited partnership is not a common form of business entity. Usually LLLPs are created by real estate businesses.
A limited partnership, or LP, and a LLLP are the same in that they both have general partners and limited partners. In both entities, the limited partners are only liable for the investments and are not liable for any debts and obligations of the partnership.
The difference is that a LLLP protects the general partners by providing them with a liability shield similar to that of a limited liability partnership. Therefore, the general partners are only liable for the debts and obligations of the partnership and are not liable for the negligence or misconduct of the other general partners.
A limited liability partnership, or LLP, differs from a limited liability limited partnership in that the limited liability partnership does not have limited partners. The best way to think about the difference between a LLP and a LLLP is that a LLP is a general partnership with limited liability protection, whereas a LLLP is a limited partnership with limited liability protection.
An LLLP is a new type of business entity and has not been adopted by every state. In the states that do adopt LLLPs, formation can usually be created in two types of ways:
Determining the business structure of a business is a vital part of the business' success. Therefore, seeking the services of an attorney will assist in assessing the right business structure for the type of business which you want go into.
Last Modified: 02-15-2017 01:04 PM PSTLaw Library Disclaimer
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