Why a limited liability partnership (LLP)?
LLPs are a specialized entity. It is best for businesses that require a state license to practice. Those businesses include (but are not limited to) dentists, doctors, attorneys, accountants, etc. LLPs do provide liability for debts, but it may not be as comprehensive as an LLC, S Corp, or C Corp.
ADVANTAGES:
An LLP does provide protection against personal liability, but not comprehensively. It also provides pass-through taxation privileges. An LLP is flexible when it comes to management, but does require increased accountability for partners with day-to-day responsibilities. However, it does have minimal formal requirements for paperwork or accounting.
IMPORTANT TO KNOW:
An LLP often requires that an owner have personal liability coverage including insurance policies, etc.
WHAT ARE THE DRAWBACKS:
- Often required for "professional services" such as dentist or doctor
- Not as comprehensive of benefits
- More complex to create compared to an LLC, Sole Proprietorship, or General Partnership.
TO GET begin creating your LLP, SIMPLY COMPLETE THE FORM BELOW and one of our representatives will be in touch: