Limited liability limited partnerships

What is a Limited Liability Limited Partnership?

A limited liability limited partnership (“LLLP”) is a type of business entity that a person can select as an option when setting-up their new company. More specifically, an LLLPhường is considered lớn be a size of a limited partnership (“LP”). It provides its general partners with the same kind of liability protection as those offered in a limited liability partnership (“LLP”).

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For example, a person starting a business may choose khổng lồ structure it as an LLLP., a corporation, a general partnership, a limited liability company (“LLC”), and so on. One of the main reasons for selecting a particular type of organization is for tax purposes.

Other reasons may depkết thúc on the kinds of benefits that a person can receive, the advantages that the partners may have sầu, & the primary purpose of the business.

LLLPhường organizations are one of the newest structures available for people starting a business. They require one or more general partners và are mostly made up of limited partners. Similar lớn an LP.., a general partner is responsible for managing the LLLP.., whereas a limited partner is usually only involved in an investor capacity.

Like all the other business entities, LLLPs also have sầu different requirements depending on the state. This generally includes what is necessary to lớn form the company, the kinds of documents khổng lồ tệp tin with the state, và having khổng lồ pay various filing fees.

One important thing to lớn keep in mind about LLLPs is that they are not available in every state. Therefore, before you elect LLLPhường as the type of business entity for your organization, you should speak with both a tax advisor và a business attorney. A business attorney will be able lớn provide advice about whether an LLLP is right for you & if it is available as a business option in your state.


Who Forms Limited Liability Limited Partnerships?

LLLPs are not the most common type of business entity. As previously mentioned, the reason for this is because it is a new size of entity that is not yet recognized in every state. In general, LLLPs are usually created by businesses associated with the real estate industry.

For example, investors may choose lớn size an LLLPhường when constructing a khách sạn chain or a number of commercial buildings. An LLLPhường gives them certain advantages và protections that are not provided by the other entities, such as being let off the hook for personal liability.

In other words, they may thảm bại their investment money, but they cannot be held personally liable for debts owed or unpaid taxes that belong khổng lồ the LLLPhường. Unlượt thích some of the other entities, this benefit can be exercised by both the limited partners khổng lồ the LLLPhường and the general partners.

Some other examples include publishing firms, car dealerships, asset management companies, & as an outlier in the media industry, even CNN.

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What are Some Differences Between a Limited Partnership (LP) & a Limited Liability Limited Partnership (LLLP)?

As discussed above sầu, LPs & LLLPs are similar in that they both have sầu khổng lồ have sầu at least one general partner & some number of limited partners. In each of these types of entities, the limited partners are only liable for their investments & they are not liable for any of the debts or obligations of the partnership itself.

In contrast, under an LP.. formation, the general partner will be equally responsible for debts incurred by the partnership as well as can be held personally liable.

On the other hand, under an LLLPhường formation, the general partner can no longer be held personally responsible for debts incurred by the partnership. They have sầu a figurative shield of “limited liability.” This also means that they will not be liable for the negligence or misconduct of the other general partners.

What are Some Differences Between a Limited Liability Partnership (LLP) và a Limited Liability Limited Partnership (LLLP)?

An LLP.. differs from an LLLP in that the LLPhường does not have any limited partners. A good way to rethành viên the difference between an LLPhường & an LLLPhường. is that an LLPhường is a type of general partnership with limited liability protection.

In contrast, an LLLP. is a limited partnership where both sets of partners receive limited liability protection.

How is a Limited Liability Limited Partnership Created?

Again, since LLLPs are the newest type of business entity, it has not been adopted yet by every state. In the states that have sầu adopted LLLPs, it can usually be formed by adhering to lớn a state’s requirements, which are typically set out in one of the following two statutes:

A state statute that directly authorizes the creation of an LLLP; andIn accordance with the state statute, an LPhường can file for limited liability protection for its general partners, which will transform it inlớn an LLLP..

Do I Need to lớn Hire an Attorney for Help with Creating My LLLP?

Determining what type of business entity that your organization should be structured as plays an essential role in the success of your business. Therefore, you should strongly consider contacting a local business attorney who can help you to lớn evaluate the options.

Additionally, an experienced business attorney can also nhận xét the necessary paperwork before filing it with your state và can walk you through the filing process as well.

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Jaclyn started at michael-shanks.com in October 2019. Her role entails writing legal articles for the law library division, located on the michael-shanks.com trang web. Prior khổng lồ joining michael-shanks.com, Jaclyn was a paralegal & freelance writer. After several years of working for both criminal defense và entertainment law firms, she enrolled in law school.While in law school, her law journal note was selected for first-round publishing, and can be found on various legal research databases. Jaclyn holds a J.D. from Benjamin N. Cardozo School of Law, specializing in both intellectual property law and data law; và a B.A. from Fordham mê University, majoring in both Journalism và the Classics (Latin). You can learn more about Jaclyn here.


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