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What is a limited liability partnership?

A limited liability partnership is a special type of partnership only used by businesses organized by certain types of professionals. For example, a group of lawyers or doctors may start a law firm or a health clinic as a limited liability partnership.

The major distinction between this and other types of partnerships is that the owners of an LLP are not personally liable for the negligence of other partners, although they remain liable for their own negligence and for any debts or losses of the business itself. Thus, these are useful in states where the law or professional ethics rules will not allow the professionals to form a corporation or LLC, as it affords the owners at least some limited liability. For example, many state ethics rules do not allow lawyers to form anything other than a partnership, so a limited liability partnership at least affords the owners a little protection in the event that one attorney commits malpractice or some other negligent act.


A limited liability partnership is a special type of partnership only used by businesses organized by certain types of professionals. For example, a group of lawyers or doctors may start a law firm or a health clinic as a limited liability partnership.

The major distinction between this and other types of partnerships is that the owners of an LLP are not personally liable for the negligence of other partners, although they remain liable for their own negligence and for any debts or losses of the business itself. Thus, these are useful in states where the law or professional ethics rules will not allow the professionals to form a corporation or LLC, as it affords the owners at least some limited liability. For example, many state ethics rules do not allow lawyers to form anything other than a partnership, so a limited liability partnership at least affords the owners a little protection in the event that one attorney commits malpractice or some other negligent act.A limited liability partnership is a special type of partnership only used by businesses organized by certain types of professionals. For example, a group of lawyers or doctors may start a law firm or a health clinic as a limited liability partnership.

The major distinction between this and other types of partnerships is that the owners of an LLP are not personally liable for the negligence of other partners, although they remain liable for their own negligence and for any debts or losses of the business itself. Thus, these are useful in states where the law or professional ethics rules will not allow the professionals to form a corporation or LLC, as it affords the owners at least some limited liability. For example, many state ethics rules do not allow lawyers to form anything other than a partnership, so a limited liability partnership at least affords the owners a little protection in the event that one attorney commits malpractice or some other negligent act.


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Can I set up a partnership without a lawyer?

Because general partnerships are relatively easy to setup, you generally can start one without the help of an attorney. You will obviously need to do some research on your own, such as looking into appropriate names, determining the relevant state and local laws and regulations, etc. However, as long as you do your research, you may be able to setup and run your general partnership without the help and expense of an attorney. Of course, you should understand that there is always a risk that if trouble arises with your partnership down the road, you may be in a worse situation then you would be in if an attorney had originally helped you set up the general partnership. This is not to suggest that you should not set it up on your own - simply that you should tread carefully.

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What is a corporation?

A corporation is one of the four general ways you can choose to organize your business (the other three being as a sole proprietorship, as a partnership or as a limited liability company). Like partnerships and limited liability companies, a corporation is a separate legal entity from its owners, and it can live beyond the life of any of the individual owners. Corporate owners are known as shareholders. Many times a corporation is not run or controlled by its shareholders. Instead, the corporate directors manage the corporation and the officers operate it on a day- to-day basis (of course, the role of shareholders, directors and officers can often be mixed, and for small corporations, there may just be one or more shareholders who also run and control the company).

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European Funds – for the development of innovative economy. We invest in your future Project is co-financed by the European Regional Development Fund under the Operational Programme Innovative Economy.