BizFilings makes it simple, fast, and affordable to form a Limited Liability Partnership in any state, without legal fees. Select your desired state below to get started:
Where would you like to form your LLP?
A limited liability partnership (LLP) is similar to an LLC in
that all partners have limited liability for business debts,
but many states this liability protection is less
than what LLCs or corporations receive. Several states
also impose mandatory insurance requirements or the
use of an escrow account on the owners of an LLP.
Further, some states limit the use of LLP to professionals,
those occupations that require a license to do business.
The LLP structure is especially appealing to types of
businesses that were prohibited in the past from
forming an LLC or corporation, such as accountants
and attorneys. The costs of transferring those existing
general partnerships to an LLC or corporation now
where it is allowed can be very costly. However, for
most small businesses, an LLC or S Corporation may
be a better choice.
An LLP allows for pass-through taxation, as its income
is not taxed at the entity level. To form an LLP,
appropriate formation documents must be filed with
the appropriate state agency and the necessary state
filing fees paid.
Advantages of a Limited Liability Partnership (LLP):
LLPs allow for pass-through taxation
All partners are not held personally responsible for the debts and liabilities of the business
Partners have more flexibility in structuring the management with less formal requirements and annual paperwork
Easier conversion from a general partnership to an LLP than to a LLC or corporation
To create an LLP the proper formation documents must be filed with the appropriate state agency and the necessary state filing fees paid.
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Did You Know?
Capital can be raised more easily through the sale of stock. Additionally, many banks, when providing a small business loan, want the borrower to be an incorporated business.
