When you are in the early days of starting your own business, you can find yourself facing a number of difficult decisions. You will need to decide how you are going to market your product or service and how you will approach your consumer base. You will also have to consider where your business will be based–will you require office space? Do you need a retail storefront? You may also need to bring on a team of employees, which as any business owner will tell you is one of the toughest parts of the job. Coupling all of this with the inherent risks associated with entrepreneurship can seem daunting, so it is not unusual to venture into a new business with a partner. If you are considering forming an LLP, you may want to learn some of the nuances associated with this legal structure.
For certain types of businesses, a Limited Liability Partnership (LLP) can make a lot of sense. This structure is particularly popular among licensed professionals such as attorneys, dentists, doctors, and architects. It is worth noting, however, that LLPs are not available in all states, and each state will have its own rules and regulations surrounding who is eligible for this business formation. Read on to learn more about some of the advantages of creating an LLP, as well as how you can file your paperwork online.
Why Forming an LLP May Be Right for You
Similar to a Limited Liability Company (LLC), an LLP affords its partners the concept of “limited liability”, though with a slight caveat. In an LLP, it is possible for one partner to be found liable while the other partners are able to shield their personal assets from any potential legal judgments. This sort of targeted accountability makes LLPs a logical choice for licensed professionals, and in some states (California and Nevada) they can only create LLPs.
An LLP also enjoys the same pass-through status with the Internal Revenue Service (IRS) as its LLC counterparts. That means the profits created by your partnership will not be taxed until they pass through to the individual partners.
How to Create Your LLP Online
Again, you will want to verify that LLPs are available in your state, but in places that do allow them, the process for formation is generally fairly similar. First, you will need to select a name that is not already registered in your state. Next, you will need to select a registered agent–this person will be charged with receiving all legal correspondence on behalf of your business. Lastly, you will need to file a Certificate of Limited Liability Partnership with your Secretary of State’s office. This document will prompt you for some information about your business as well as the partners involved.
At Corporation Center, we can help you file this document online in a prompt and comprehensive manner. Simply find your state in our easy-to-read side navigation and you will be brought to a page where you can find an online form for creating an LLP. If you have any questions, please feel free to contact one of our customer service agents by email today.