Limited liability partnership

The limited liability partnership (LLP), by American definitions, is similar to the limited liability company, differing only in that the LLP is designed more for professionals who normally do business as partners in a partnership. This is generally the same business structure as the general partnership, with the benefits of the limited liability company's limited liability of the partners.

The advantages:

• The major advantage is that the LLP allows a partnership to continue as a pass-through entity for tax purposes but also limits the personal liability of the partners.
• Most of the same advantages as the General partnership.

The disadvantages:

• There is an organizational fee required.
• This a relatively new form of business organization, so not all states are uniform on how to treat the entity and the laws have yet to be standardized for the LLP.
• Many states only allow LLPs for professionals (thanks sekicho).

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