Benefits of Forming an LLLP Partnership and Drawbacks to Keep in Mind

Benefits of Forming an LLLP Partnership

Intrigued by the idea of forming an LLLP but want to know everything before you make a final decision? Have you been researching both the Benefits of Forming an LLLP Partnership as well as the reasons that might not be the best fit for you? Here at the Corporation Center, we’ve helped those from all across America to be able to form a business entity of their choice. There are many reasons that people are forming LLLP Partnerships in the states that recognize them. 

Main Benefits of Forming an LLLP Partnership: A Litigation Shield 

Should your partnership be involved in any litigation, an LLLP shields the general partners from being held personally liable. That’s a big, big deal for many. So, should a lawsuit be brought against the company, the general partners won’t have to worry about losing their personal finances. Additionally, this covers if there are lawsuits relating to misconduct by the other general partners as well. 

Like many other business entities, an LLLP can buy and sell stocks, mutual funds, and bonds, too. If you have any questions about LLLPs, we encourage you to reach out to our live agents. 

Limited Partners and General Partners 

In the context of LLLPs, “general partners” are those who work at the company every day. They take on the day to day tasks of running the company, doing the things that need to be done. Limited Partners, on the other hand, for the most part only invest. These partners can be “silent,” in that they aren’t around or working every day, but they have invested in the company. 

Who Most Often Benefits from a LLLP 

Most often, LLLPs are utilized by those in the real estate industry. Groups of investors don’t want to be responsible for the debts of the company when they’re looking to get into residential or commercial buildings. With an LLLP, they may only lose the amount they invested and nothing beyond that. Within this framework, other groups that avail themselves of the LLLP often include car dealerships, companies that manage assets, law firms, research labs, and many others.  

LLLP Partnerships: Only Available in Certain States 

At the time this blog was written, not all states recognized LLLPs. These do include states where people often form business entities in, such as Delaware, Colorado, and Arizona. However, this number does not include California and New York. You can form them in states as diverse as Minnesota, Indiana, New Mexico, North Carolina, Ohio, Alaska, Florida, and elsewhere.

Benefits of Forming an LLLP Partnership

Form More Than an LLLP Through the Corporation Center 

Through the number of LLLPs corporate forms that we’ve processed, we can tell you that these are becoming more popular. That said, they’re far from the only forms of corporate documentation that we offer. Indeed, you can find the forms you’ll need to start an LLP, corporation, or other business entity in the state that you want. To see how we can help, visit our site.