Is it finally time to start your own business? Has that great idea you have been kicking around for years finally become too exciting to ignore? If so, you are about to begin an exhilarating, if daunting journey. Perhaps you have always been put off by the risk of starting your own venture, and you have found that a good way to mitigate such challenges is by working with a partner. It is true that partnerships can make a lot of sense in the business world, though they can also call for certain practical and legal considerations. For example, you may wish to structure your business in a way that still protects you on an individual level, and a Limited Liability Limited Partnership (LLLP) may provide a good fit. So, with that in mind, you may be wondering just how to form an LLLP.
An LLLP is a legal way of structuring a business. You may be more well-versed with the Limited Liability Company (LLC), which shares a number of the same characteristics. Corporations are another way to structure a business. So too is the Limited Liability Partnership (LLP), which you can think of as a sort of cousin to the Limited Liability Limited Partnership. Depending on the needs of your organization, an LLLP can make a lot of sense. Read on to learn more about this modern way of formalizing a business partnership.
What Is a Limited Liability Limited Partnership?
An LLLP is a relatively new way to structure a business that has gained traction in recent years. In some ways, it is a hybrid of certain other business structures, forming an amalgam of tax benefits and liability protections. Essentially, in an LLLP, both limited and general partners can shield their personal assets from legal judgments or bankruptcies against their business.
An LLLP must have at least one general partner. There is no real cap on how many limited partners you can have. General partners typically handle the bulk of daily management concerns, while limited partners can play a more background or “silent” role, primarily participating through investment. This sort of arrangement makes LLLPs a smart choice for, say, real estate investors.
How to Form an LLC Online On Our Site
Before you set out to create your LLLP, you should first make sure that the structure is available in your state. Not all states recognize LLLPs, including notable places like California. From there, you will want to draw up the official paperwork to submit to your state’s Secretary of State office for processing.
At Corporation Center, we can help you establish your Limited Liability Limited Partnership online in just a matter of minutes. If you select your state from our side navigation, you will be brought to a landing page containing a number of web templates. Simply select the LLLP option, and follow our easy-to-understand instructions. Once you have filled in the necessary prompts, you can then submit your documents via our secure, SSL-encrypted web portal for processing. If you would like to learn more, contact us by email or phone today.