Starting your own business is no easy task. In order to employ your wealth of experience in your own business venture, you will need to take a lot of preparatory measures. This can mean everything from drawing up a basic business plan to hiring a solid team to help get your endeavor off the ground. Of course, even with a fair amount of preparation, starting your own organization comes with a high degree of risk. One way in which some entrepreneurs opt to mitigate these challenges is to form a partnership. In the business world, it is not unusual for two or more like-minded individuals to go into business together, and in some states, you can even create a Limited Liability Partnership (LLP), which combines the advantages of a Limited Liability Company (LLC) with the principles of a general partnership. If you are interested in starting your own business, it may be prudent to learn more about forming an LLP.
For business purposes, a general partnership technically takes place any time two or more people start a business together. A general partnership can be a fairly informal affair, often consummated with a handshake or verbal agreement. While this works for some, others would prefer to have more official, legally binding documents in place. By creating a Limited Liability Partnership, you can better shield your interests while still working with others to build a successful business.
Forming an LLP: Getting Started
Before you can begin the process of starting your LLP, you are going to want to make sure that this is an available business structure in your state. Unlike LLCs, LLPs are not available everywhere. From there, you will want to select a name for your business that is wholly unique from the other registered LLPs in your state. Next, you will need to appoint a registered agent. This individual will be charged with receiving all tax, government, and legal correspondence on behalf of your organization.
Filing Your Documents Online
With your preliminary steps complete, it is time to complete your Certificate of Limited Liability Partnership. This document will call for some basic information about your business as well as the partners involved. You can complete this form online by working with us at Corporation Center. We offer an easy-to-read, streamlined web form that allows you to complete this document in just a matter of minutes.
Once your LLP is created, you and your partners can enjoy the protection afforded by limited liability. This means that if one partner’s negligence results in a lawsuit or bankruptcy, the other partners can shield their personal assets. This liability structure makes LLPs especially popular among licensed professionals like attorneys and doctors. An LLP is also treated as a “pass-through” entity by the Internal Revenue Service (IRS), meaning that the profits generated by your business are not taxed until they pass through to the individual partners.
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