What Is a Limited Liability Partnership?
A limited liability partnership is a business entity which is well-suited to those who wish to enjoy the benefits of a partnership without some of the liability issues that are inherent. A Conroe partnership attorney can help you decide if a limited liability partnership or other business form is best for your needs.
Partnerships and Limited Partnerships
In understanding the purpose and benefits of a limited liability partnership it may help to examine other partnership arrangement options. As your Conroe partnership attorney will tell you, a general partnership is an entity co-owned by more than one individual who do not file as a corporation or LLC. Partners in such an arrangement have what is called joint and several liability, which means that if one partner becomes liable within the entity for a debt the liability extends to all the other partners.
A limited partnership is an entity in which one partner retains business decision power, the general partner. The limited partner, on the other hand, invests money and benefits from profits but does not have much control over the running of the company. Limited partners are not liable for debts incurred by general partners.
Limited Liability Partnerships
A limited liability partnership is something of a hybrid between a limited partnership and general partnership, with elements of an LLC thrown in. As your Conroe partnership attorney will tell you, an LLP is often used by lawyers and other professionals who tend to be vulnerable to liability suits. In a limited liability partnership, then, there are no general or limited partners. All partners retain full control, or as they determine amongst each other. However, the partners are not exposed to joint and several liability. Rather, they remain immune from liability for debts incurred personally by another partner.
Work with a Conroe partnership attorney Today
If you are considering starting a limited liability partnership, it is important that you discuss your options with an experienced and knowledgeable Conroe partnership attorney. Call Peterson Law Group today to arrange a consultation at 979-703-7014 or 936-337-4681.